:onomy of Macroland is initially in long-run equilibrium. A severe drought causes an adverse hock. happens to prices and output in the short run using the AD-AS model? Describe and show lly would happen to prices and output in the long run if there is no policy accommodation? Central Bank of Macroland wants to prevent the short-run changes in price and output, what :tion could it take? How would the results of this policy action differ from the prices and output le result in the long run with no policy action