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ALL INFORMATION REQUIRED TO SOLVE IS LISTED! 9. You've been elected by a landslide, promising to stimulate the economy though increases in G. Unfortunately, your

ALL INFORMATION REQUIRED TO SOLVE IS LISTED!

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9. You've been elected by a landslide, promising to stimulate the economy though increases in G. Unfortunately, your predecessor got to choose the exchange rate regime and the strength of international capital controls. The population is vitally concerned with Y, real GDP (it wants it to increase as much as possible), I, Investment (it wants it to increase as much as possible) and NX, net exports (it wants it to increase as much as possible). The possibilities are in the 4 graphs below. Each shows the identical increase in IS due to your policy (Charts "Fixed Weak", "Fixed Strong", "Floating Weak" and "Floating Strong"). For each of the charts, indicate the final changes to equilibrium values where the economy has returned to full equilibrium. YOU MUST COMPLETE CURVE SHIFTS ON THE GRAPHS! You might want to copy this shape: a. (4 + 9 pts.) For the "Fixed Weak" environment, complete the chart, showing all curve shifts and indicate the final result with ** and Y**. What has happened compared to the equilibrium with Yi and in to each of the following (Circle the correct answer): K I NX G Ms X L mx b. (4 + 9 pts.) For the "Fixed Strong" environment, complete the chart, showing all curve shifts and indicate the final result with i* * and Y**. What has happened compared to the equilibrium with Yi and in to each of the following (Circle the correct answer): NX G Ms X L c. (4 + 9 pts.) For the "Floating Weak" environment, complete the chart, showing all curve shifts and indicate the final result with i** and Y**. What has happened compared to the equilibrium with Yi and in to each of the following (Circle the correct answer): NX -C. K G -- - Ms X L I mx (4 + 9 pts.) For the "Floating Strong" environment, complete the chart, showing all curve shifts and indicate the final result with i* * and Y**. What has happened compared to the equilibrium with Y1 and in to each of the following (Circle the correct answer): NX G -+ + Ms X L

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