Suppose some capital stock in an economy was destroyed by terrorist bombing, leading to a decrease in the supply of capital inputs. Due to factor complementarity, the marginal productivity of labor (MPN), hence the demand for labor inputs (N^d), would fall. As a result of the reduction in employment of both capital and labor inputs, production of output would drop at any given price level - implying a leftward shift in both the LRAS and SRAS curves.

What are the effects of capital destruction on other macro variables, including consumption (C), saving (S), investment (I), net exports (NX), loanable funds (L), real balance (m=M/P), real interest rate (r), nominal interest rate (R), real rental (r_k), and nominal rental (R_k)? Please circle the effects on these variables on a table of the following form for the short run and the long run separately.

What are the effects of capital destruction on other macro variables, including consumption (C), saving (S), investment (I), net exports (NX), loanable funds (L), real balance (mM/P), real interest rate (r), nominal interest rate (R), real rental (rk), and nominal rental (Rk) ? Please "circle" the effects on these variables on a table of the following form for the short run and the long run separately. What are the effects of capital destruction on other macro variables, including consumption (C), saving (S), investment (I), net exports (NX), loanable funds (L), real balance (mM/P), real interest rate (r), nominal interest rate (R), real rental (rk), and nominal rental (Rk) ? Please "circle" the effects on these variables on a table of the following form for the short run and the long run separately