Question: a) Use the long-run classical model to determine the qualitative impact of this shock on the long-run equilibrium levels of real output, consumption, investment, real

a) Use the long-run classical model to determine the qualitative impact

of this shock on the long-run equilibrium levels of real output, consumption,

a) Use the long-run classical model to determine the qualitative impact of this shock on the long-run equilibrium levels of real output, consumption, investment, real interest rate, real wage & real rental price of capital. Support your answer with three diagrams one for the market for loanable funds, one for the labour market & one for the rental market for capital. (10 points) NOTE: Fill in the following table to submit along with your answer to this part. Do not forget to provide an economic explanation as to why this change did or did not occur. Variable (part a) Change (if any) Explanation Output Consumption Investment Real interest rate Real wage Real rental price of K

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