(a) Suppose the nominal equilibrium interest rate falls. What happens to the short-run equilibrium price level and real GDP assuming all other determi¬ nants of AD and SRAS remain the same?

(b) The computer industry is constantly improving the speed and power of personal computers. Intel’s 486 and Pentium processors are able to outperform the original 8088 chips of a decade ago by orders of magnitude. Holding other things constant, what is the impact of this technological advance on the equilibrium price level and the level of real GDP?