10 Points Minor Name: Due 4/23 (A) or 4/24 (B) Instructions - Read the following article and answer the questions below: 1. What Fiscal Policies is Argentina's new President enacting? How would you expect those to impact aggregate demand for Argentina in the short-run? 2. What is he trying to impact through the devaluation of the Argentine Peso? 3. Draw a graph of the current economic condition of Argentina representing a large inflationary gap using AD/AS/LRAS. a. Mark the current level of output at Y1, price level as PL1 and full employment output as YI. 4. Draw the shift in AD or AS that you would expect to see from the Fiscal Policies discussed in question 1. How would you expect this to impact Price Level and Unemployment in Argentina? 5. Are the initial trends in inflation and unemployment discussed in the article in line with what macroeconomic theory would suggest? Give examples from the article