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Give details the effect of the shocks on the nominal interest rate

describe the effect of the shocks on the long run with the help of an AD-AS graph

Suppose which deterioration in the education level of the U.S. population reduces the marginal product of labour. Also suppose which at the same time there is a rise in transfer payments (for ex, for Social Security and Medicare) by the government.

With the help of a money-demand, money-supply graph, describe the effect of these shocks on the nominal interest rate, i.

With the help of an AD-AS graph, describe the effect of these shocks on the long-run equilibrium level of the price level and output. Use a long-run supply curve to answer this problem.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917060

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