Suppose which deterioration in the education level


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

Explain 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 example, for Social Security and Medicare) by the government.

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

With the help of an AD-AS graph, explain 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 question.

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Business Economics: Suppose which deterioration in the education level
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