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Analyse how the following shocks will affect the natural rate of interest: (a) Firms become more pessimistic about future demand for their products. (b) A
Analyse how the following shocks will affect the natural rate of interest:
(a) Firms become more pessimistic about future demand for their products.
(b) A temporary reduction in production due to a bad harvest.
(c) A hurricane destroys a substantial share of the capital stock but miraculously no one dies.
Please explain to me about this step by step with graphs as well, like how would each graphs etc, please list out the graph nicely and explain what each labels, please do give a try in this question, thanks a lot!
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