Ad as diagram and md ms diagram

Reference no: EM1313749

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.

Reference no: EM1313749

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