In the new Keynesian model, an increase in productivity will cause ___
In the new Keynesian model, an increase in productivity will cause ________.
A) a leftward shift in short-run and long-run aggregate supply
B) a rightward shift in short-run and long-run aggregate supply
C) a leftward shift in short-run aggregate supply and rightward shift in long-run aggregate supply
D) a rightward shift in short-run aggregate supply and a leftward shift in long-run aggregate supply
ANSWER
B
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