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a. Using graphs: 1S/LM, AD/AS, Production function and Labor market show the dynamic effects of the following: (short run- medium run 1- An increase in

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a. Using graphs: 1S/LM, AD/AS, Production function and Labor market show the dynamic effects of the following: (short run- medium run 1- An increase in Money Supply 2- An increase in At. b. For any one of the two cases in (a) above draw the dynamic phase diagram. c. Write the Solow equation for growth model. Explain the concept of steady state. d. Draw the Solow equation and show the effects of an increase in saving rate on the steady state capital labor ratio. e. In the Growth Model, explain that C = 0 if s = 0 or s = 1 (s saving rate, consumption)

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