Illustrate the effects of the supply shock in the short

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Reference no: EM13241871

Suppose that you are an economist working for the Federal Reserve when good weather in the Midwest Substantially increases food production in the United States. Assume the economy is in short and long run equilibrium before the supply shock. Use the aggregate/ demand aggregate supply model, the Keynesian cross model and the modey market model to verbally and graphically explain and illustrate the effects of the supply shock in the short and long run.

Reference no: EM13241871

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