In the monetary intertemporalmodel, a new technological innovation comes on line. Assume that any that for any function of two or morevariables, the effect of an ambiguous change in one variable is outweighed by the effect of an unambiguous change in any other variable. Make use of the empirical relative magnitude of the relationship between the real interest rate and labour supply.

NOTE: put "must increase" "must decrease" "must not change" "may increase, decrease, or not change" in the blanks.

In the monetary intertemporel model, a new technological innovation comes on line. Assume that any that for an}.r function of two or more variables, the effect of an ambiguous change in one variable is outweighed by the effect of an unambiguous change in any other variable. Make use of the empirical relative magnitude of the relationship between the real interest rate and labour supply. In response to this change. in the current period. aggregate output must increase. consumption 'l' investment employment the real wage the real interest rate the nominal interest rate V and the price level