A small open economy with perfect capital mobility is currently in its long-run equilibrium with a trade surplus. Recently, the economy experienced a drop in the level of total factor productivity. In the context of the long-run classical model of a small open economy, discuss the effect of the total factor productivity decline on the levels of output, (domestic) investment, trade balance, price level, and both nominal and real FC/DC exchange rate. Explain and support your answer by the loanable fund market and foreign exchange market diagrams. Be sure to explain why the variables of interest change or remain unchanged.