1.With the framework of aggregate demand and aggregate supply, graphically illustrate and carefully explain the impact of a general expectation of rapid inflation on the economy's equilibrium price and real output in the short-run, assuming that the price level is flexible both upward and downward.

2.With the aggregate demand and aggregate supply framework, graphically illustrate and carefully explain how the U.S. economy could achieve her overall macroeconomic goal of full employment, strong economic growth, and price level stability in the short-run.