Macro- & Monetary Economics

Prio: Normal, Part II: Keynes, Type: MC, Quiz 2

In the neoclassical model, suppose that there is technological progress raising future total factor productivity. This implies that

  • the output supply curve shifts to the right
  • the output demand curve shifts to the right
  • there is a move along the output supply curve until a new equilibrium is reached with higher output and lower interest rates
  • there is a move along the output demand curve until a new equilibrium is reached with higher output and higher interest rates
 

Diskussion