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Use the AS/AD model to predict how each of the following shocks would likely affect real...

Use the AS/AD model to predict how each of the following shocks would likely affect real aggregate income (Y), the overall level of real interest rates (r), and the price of goods and services (P) in the long run, all else equal. In each case, be sure to make a long run prediction (up, down, or no change) for all three variables, and illustrate your predictions with an IS/LM diagram and a supply/demand diagram for the goods market.

a.Government purchases decline (G down)
b. The nominal money supply increases (MS up)
c. Autonomous consumption increases (c0 up)
d. Total factor productivity increases (A up)

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