Consisting of current goods market-labor market-money market

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Assume a New Keynesian Model Framework consisting of current goods market, labor market, money market and the production function. Since this framework helps reconcile business cycle facts, we can empirically assume sticky prices and target interest rate. Now, suppose there is a positive shock to total factor productivity. Determine the effects on real output, real interest rate, price level, money supply, employment, real wage through a series of graphical analysis

Reference no: EM131118530

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