The graphs below represent the effects of Nd NS NS(r2) Yd(z'2) yd y's w = current real wage r = real interest rate W1 W2 r1 N1 N2 Y1 Yz N = Current Employment Y = Current Output O a fall in current TFP O a rise in future TFP O a rise in current government spending financed with current taxes O a rise in credit market uncertainty O a rise in current TFP