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please do it in 10 minutes will upvote Suppose Canada is a closed economy and in its long- un equilibrium initially. The government increases its

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please do it in 10 minutes will upvote

Suppose Canada is a closed economy and in its long- un equilibrium initially. The government increases its subsidy to new capital investment projects. At the same time, the shortage of computer chips/semiconductors forces many manufactures to delay their spending on replacing depreciated machinery and equipment. In the context of the long-run classical model, examine the effects of the above events on the following variables in the long run: . output . real interest rate national savings real rental price of capital . price level Explain and support your answer by ONE diagram for the market of loanable funds and ONE diagram for the rental market for capital. Upload Choose a File O o 0

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