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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.
Hi, please draw good graphs and good step by step explanations !
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