For each of the following events, explain the short-run and long-run effects on output and the price level in Pakistan, assuming policymakers take no action.

1. The Karachi stock market declines sharply, reducing consumers' wealth.
2. The federal government increases spending on national defense.
3. A technological improvement raises productivity in Pakistan.
4. A recession overseas causes foreigners to buy fewer Pakistan goods.
5. State Bank of Pakistan increases the policy rate (Interest rate).