Assume that there no surprises, with all economic agents and the central bank having full information about shocks that are hitting the economy. 1. Suppose there is a temporary,r decrease in TFP. Determine with the aid of diagrams the effects of this on aggregate variables? What should the central bank do in response, if it adopts a price level target? Explain.[2{] pts] 2. Now, suppose that instead of a price level target, the oentral hank adopts a nominal GDP target. What should central bank do ? [10 pts]