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Consider 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, explain 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.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9164126

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