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Unformatted text preview: r 1 ˆ N 1 ˆ Y Figure 2 Question 2 : Suppose that total factor productivity today ( z 1 ) decreases in the sticky wage model. Determine the e/ects on today&s real output, real interest rate, consumption, investment, employment, the price level, and the real wage. 1...
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 Spring '11
 Tan

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