An open economy with a downward sloping ERU curve is at the
long-run equilibrium. Suddenly, the elasticity of demand for the
monopolistically competitive firm's output η increases from 6 to
11. At the same time, labor productivity λ decreases from 12 to Z.
After this ___(a)____ supply shock, the economy will transition to
a new medium run equilibrium characterized by ___(b)____ real
exchange rate, ___(c)____ level of output, ___(d)____ real
consumption wage, and a trade ___(e)____. (Hint: choose your
answers...