1. People's Bank of China Governor Yi Gang said the central bank's attention is now centered on economic growth, a sign that policymakers may shift gear toward supporting the recovery as the nation gradually eases Covid controls. "Our focus is growth right now," Yi said in a video speech given at a central bank conference in Bangkok on Friday. "We have a pretty accommodative monetary policy in place to help with economic recovery and maximize growth" Analyze the effects of the policy under these scenarios:

1.1. The economy has a labor market fully flexible, with no firing costs and mobility. Assess the effectiveness of the policy using the money market, IS-LM model together with the AD-AS model and effect on employment. Use all the markets involved, use the models -math- and graphs. Explain thoroughly in economic terms.

1.2. Compare the effectiveness of the PBC policy in the case that the economy presents rigidities in the labor market (sticky wages). Use all the markets involved, use the models -math- and graphs. Explain thoroughly in economic terms.