The governments of some nations answer the question of what to produce to

Use the classical (RBC) IS—LM—FE model to show the effects on the economy of a temporary adverse supply shock; for example, an increase in the price of oil

You should show the impact on the real wage, employment, output, the real interest rate, consumption, investment, and the price level.

If the customer moves first with a high price what is the best response of the shopkeeper

a. Accept the high price happily b. Walk away from the deal c. Throw the haggling customer out of your store d. Laugh at the customer's face