2. Examine the effect of each of the following on output, the real interest rate, employment, and the price level in the short run and the long run. Use the Keynesian IS–LM graph to explain your answer.

a. After a financial crisis, people lose confidence in the financial market and prefer to hold more cash.

b. People use Bitcoin rather than money since more shops accept it for transactions and banks accept it for deposits.

c. A nuclear power accident destroys the factories and pollutes agricultural products, driving up price levels.

d. A new holiday scheme motivates workers to raise their morale and their productivity.