$1.$ Temporary vs$.$ Permanent Productivity Shocks $($a$)$ In the last problem set, we solved the following market$-$clearing model of a closed economy for temporary versus permanent shocks: N s $($w$)=$ N d $($w; A$)$ : labor market $(1)$ Y $=$ AF$($K$,$ N$)$ : production function $(2)$ Y $=$ C d $($r$,$ P V LR$)+$ I d $($r$)+$ G : goods market $(3)$ C $+$ C f $1+$ r $=$ P V LR $=$ wN $+$ T $+$ w fNf $+$f $$ T f $1+$ r $=$ Y $$ I $$ T $+$ Y f $+(1$ d$)$Kf $$ T f $1+$ r : household budget $(4)$ Kf $=$ I $+(1$ d$)$K : capital accumulation $(5)$ G $+$ Gf $1+$ r $=$ T $+$ T f $1+$ r : government budget constraint $(6)$ Ms P $=$ L$($r $+$ e $,$ Y $)$ : asset market $(7)$ More specifically, we had answered the following: suppose that present total factor productivity A suddenly falls without any change in the expected level of future productivity. As an approximation, suppose that the decline in productivity is short enough so that P V LR does not decline. What is the effect on the present aggregate quantities and prices $($Y$,$ N$,$ C$,$ I, r$,$ P$)$ if the government keeps money supply and expected inflation rate constant?