Question: Use the IS-LM-PC model to explain how the news would be expected to affect GDP in both the short and in the medium run. Make

Use the IS-LM-PC model to explain how the news would be expected to affect GDP in both the short and in the medium run. Make sure to point out whether the IS curve, the LM curve and/or the PC curve would shift, and in what direction.

"Chile's central bank unexpectedly hikes its benchmark rate by 125 basis points"

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