a) What are government's fiscal policy options for ending sever demand pull inflation (AD4 to AD3)? Please explain your answer to get high marks.

b) What fiscal policy action would you recommend fighting recession (AD1 to AD2)? Please explain your answer to get high marks.

c) If the economy is at point A what policy mix ( FP and MP) would you suggest to keep the economy at point A. Explain your answers below to get high marks.

d) If the economy is facing AD4 curve what monetary policy would you choose to correct the economic situation? Explain your answer to get high marks.

e) If the economy is facing AD1 curve what monetary policy action would you recommend to correct the economic situation. Explain your answer to get high marks.