1-) Notes: i) Y is real domestic output

ii) E is exchange rate in domestic currency/foreign currency terms

iii) if a government maintains a balanced budget, this implies that total government expenditure is financed from government taxes . > implies there is a government budget deficit.

a-) Assume that Australia has a law that requires its government to maintain a balanced budget at all times. Does this law imply that Australia's government can no longer use a temporary increase in government spending to increase aggregate output in the short-run? Explain with the help of a figure.

b-) What is the effect of a permanent increase in government spending on aggregate output in the short-run? Explain with the help of a figure.

Now assume that there is no law that requires the government to maintain a balanced budget at all times. Assume further that the government cuts taxes temporarily which leads to a budget deficit.

c-) What is the overall effect on Y and E in the short-run if people expect that the government will finance its budget deficit by printing extra money in the future? Explain with the help of a figure.

d-) Relative to part c), compare the effect on Y and E in the short-run if there is only a temporary decrease in taxes without the expectation that the government will monetize the debt in the future? Explain with the help of a figure.

Please show all working step-by-step and very clearly, thank you.

please answer sperate a, b , c,d

please quick theanswer