Question: Question 44 (5 points) (5 Points) Using the New Keynesian model, the effects of an increase in total factor productivity on employment and output are

 Question 44 (5 points) (5 Points) Using the New Keynesian model,

Question 44 (5 points) (5 Points) Using the New Keynesian model, the effects of an increase in total factor productivity on employment and output are as follows (To have a full mark in this question, you NEED to explain your answer in detail. Using the New Keynesian mode with GRAPHS, provide your solution in the final exam file posted under Assessment-Assignment) O a) Employment stays the same , and firms produce the same level of output with more labour. 0 b) None of the answers are correct 0 c) Employment raises, and firms produce the same level of output with more laboun 0 d) Employment falls, and firms produce the same level of output with more laboun 0 e} Employment falls, and firms produce the same level of output with less laboun

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