Can you help me do this Econ Assignment?

1 ) Im agin e th at th e e co nom y o f th e U nit e d S ta te s is in a n e xp ansio nary g ap.

a . U sin g th e A D -A S m odel, s h ow w hat a n e xp ansio nary g ap lo oks lik e g ra p hic a lly . M ake s u re to

l a bel th e a xis , c u rv e s, e quilib riu m , a nd e xp ansio nary g ap. E xp la in in a s e nte nce o r tw o w hy th is

i s a p ro ble m .

b . O n a n ew g ra ph, s h ow th e e ff e ct o n th e e co nom y fr o m p art a if th e F edera l R ese rv e r a is e s

t h e

d is co unt r a te , b ut th at th is is o nly e nough to h alf c lo se th e e xp ansio nary g ap. E xp la in in a

s e nte nce o r tw o w hat h as h appened to th e s h ort- ru n e quilib riu m o f th is e co nom y.

c . O n a n ew g ra ph, s h ow th e e ff e ct o n th e e co nom y fr o m p art b if th e F edera l R ese rv e r a is e s

t h e

r e se rv e r e quir e m ent, a nd th at th is fu lly c lo se s th e e xp ansio nary g ap. E xp la in in a s e nte nce o r

t w o w hat h as h appened to th e s h ort- ru n e quilib riu m o f th is e co nom y.

d . W hic h s ch ool o f th ought o n b usin ess c ycle s w as u se d in th is s ce nario ? H ow d o y o u k n ow ?

e . P ic k o ne o th er s ch ool o f th ought a nd e xp la in w hy th ey w ould a rg u e a gain st th is s ch ool.

2 ) Im agin e th at th e e co nom y o f th e U nit e d S ta te s is in a c o ntr a ctio nary g ap.

a . U sin g th e A D -A S m odel, s h ow w hat a c o ntr a ctio nary g ap lo oks lik e g ra p hic a lly . M ake s u re to

l a bel th e a xis , c u rv e s, e quilib riu m , a nd c o ntr a ctio nary g ap. E xp la in in a s e nte nce o r tw o w hy th is

i s a p ro ble m .

b . O n a n ew g ra ph, s h ow th e e ff e ct o n th e e co nom y fr o m p art a if th e F edera l R ese rv e d ecid es

t o buy s e cu rit ie s th ro ugh o pen m ark e t o pe ra tio ns, b ut th at th is is o nly e nough to h alf c lo se th e

c o ntr a ctio nary g ap. E xp la in in a s e nte nce o r tw o w hat h as h appened to th e s h ort- ru n e quilib riu m

o f th is e co nom y.

c . O n a n ew g ra ph, s h ow th e e ff e ct o n th e e co nom y fr o m p art b if th e g ove rn m en t d ecre ase s

t a xe se nough to fu lly c lo se th e c o ntr a ctio nary g ap. E xp la in in a s e nte nce o r tw o w hat h as

h appened to

t h e s h ort- ru n e quilib riu m o f th is e co nom y.

d . W hic h s ch ool o f th ought o n b usin ess c ycle s w as u se d in th is s ce nario ? H ow d o y o u k n ow ?

e . P ic k o ne o th er s ch ool o f th ought a nd e xp la in w hy th ey w ould a rg u e a gain st th is s ch ool.

3 ) Im agin e th at th e e co nom y o f th e U .S . is in lo ng-ru n e quilib riu m .

a . U sin g th e A D -A S m odel, s h ow w hat lo ng -ru n e quilib riu m lo oks lik e g ra p hic a lly . M ake s u re to

l a bel th e a xis , c u rv e s, a nd e quilib riu m .

b . O n a n ew g ra ph, s h ow th e e ff e ct o n th e A D -A S m od el if th e U .S . g iv e s a tr a d e s u bsid y to

M exic o , m akin g M exic a n im ports to th e U .S . c h eaper fo r c o nsu m ers a nd fir m s. E xp la in in a

s e nte nce o r tw o w hat h as h appened to th e s h ort- ru n e quilib riu m o f th is e co nom y.

c . W hat a re fiv e b enefit s o f fr e e tr a de p olic ie s?