The following question has three parts, which are to be done independently of each other. Graphically show your response to the following shocks in the AD and SRAS Model: a. If a new round of consumer pessimism abounds, what should happen to the short run growth rate? b. If there is a positive, but temporary, monetary shock, what happens to the short-run growth rate? c. If a country's imports temporarily increase, but exports stay the same, what should happen to the short-run growth rate?
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