In the Stylized DSGE Model with Sticky Prices, How Does $F F R \downarrow \rightarrow A D \uparrow \rightarrow \pi \uparrow \rightarrow \left( \frac { W } { P } \right) \uparrow$

Multiple Choice

In the stylized DSGE model with sticky prices, how does contractionary monetary policy shock affect the labor market?

A) $F F R \downarrow \rightarrow A D \uparrow \rightarrow \pi \uparrow \rightarrow \left( \frac { W } { P } \right) \uparrow$
B) $G \downarrow \rightarrow A D \downarrow \rightarrow \pi \downarrow \rightarrow L ^ { s } \downarrow$
C) $F F R \uparrow \rightarrow A D \downarrow \rightarrow Y \downarrow \rightarrow L ^ { d } \downarrow$
D) $F F R \downarrow \rightarrow A D \uparrow \rightarrow Y \uparrow \rightarrow L ^ { s } \uparrow$
E) $\tau \uparrow \rightarrow A D \uparrow \rightarrow Y \uparrow L ^ { D } \uparrow$