Supply shock with the help of AD-AS diagram and Md- Ms diagram.
Elucidate the following shocks to the economy: Oil prices fall, food prices fall, and labor productivity rises at a faster rate. With the help of one AD-AS diagram and one Md-Ms diagram, explain the effects of these shocks on the price level, real GDP, and the nominal interest rate. Use an upward-sloping, short-run supply curve in your analysis.