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Supply shock with the help of AD-AS diagram and Md- Ms diagram.

Elucidate the following shocks to the economy: Oil prices fall, food prices fall, and labor productivity rises at a faster rate. With the help of one AD-AS diagram and one Md-Ms diagram, describe the effects of these shocks on the price level, real GDP, and the nominal interest rate. Use an upward-sloping, short-run supply curve in your analysis.

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M920517

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