Explain what a coordination failure is.([5 pts)) 2. Determine what happens in the Keynesian coordination failure model if total factor produc- tivity is permanently higher. Explain using diagrams.([5 pts)) 3. Using Keynesian coordination failure model explain what happens if the money supply plays the role of a sunspot variable, which plays the role of a coordinating device for consumers and firms. Determine how this matches key business cycle facts
