Suppose there is a decrease in ?t. a) Analyse the short-run effects (on prices, wage, employment, interest rate, and output gap) of this shock. Use diagram to support your answer.  b) Propose an appropriate fiscal or monetary policy response to this shock and describe the effects of that policy response on output, prices, interest rate, employment and wage rate.  c) Compare the short-run effects (on prices and output) of

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