This preview shows page 1. Sign up to view the full content.
Unformatted text preview: a. Analyze the effects of this change in money the money supply output, unemployment, prices and real interest rates in the short and long run. Use clearly labeled IS LM and AS-AD graphs , where the AS curve is flat in the very short run, and is vertical in the long run. b. Present graphs like the ones I use in class (with time on the horizontal axis) that show the impact on output(Y), unemployment(U), the price level(P), the real interest rate(r), consumption (C) and investment (I) over time. On all of your graphs, use A to label the initial equilibrium values, B for the very short-run values, and C to label the final long-run equilibrium value. 3. Mankiw, Chapter 11, Problems and Applications, No. 4 on page 337. This is question no. 4 in the 6 th Edition on page 328. 4. Mankiw, Chapter 11, Problems and Applications, No. 7 on page 337. This is question no. 7 in the 6 th Edition on page 328....
View Full Document
This note was uploaded on 12/04/2011 for the course ECON 305 taught by Professor Terrell during the Spring '08 term at Maryland.
- Spring '08