Suppose that we have a partial sticky price New Keynesian model. Suppose

that the economy is hit with an increase in At+1. Suppose that the central

bank wants to adjust the money supply in such a way that the real wage

does not change in response to this shock. How must the central bank adjust

policy in response to the increase in At+1 in order to achieve this end? How

does output react to the change in At+1 if the central bank follows such a

policy? How does this change in Yt compare to a world in which the money

supply is exogenous (i.e. does not react to the increase in At+1)?