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In the New Keynesian model, explain how each of the following parameters affect the coefficient on the output gap in the New Keynesian Phillips

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In the New Keynesian model, explain how each of the following parameters affect the coefficient on the output gap in the New Keynesian Phillips Curve : i) ii) iii) The marginal disutility of labour The intertemporal elasticity of substitution The discount factor [25 marks]

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