answer all the question :

A) assume the liquidity trap exists. using the appropriate diagram, explain the effects of an increase in money supply using IS-LM model. (10 marks)

B) when output diviates from the natural level of output, the economy is believed to self correct over time. That is the ecnonomy will return to the natural level of output without any policy intervention of goverment:

i) explain how this process work when output is below the natural level of output ( Use IS-LM model or AD-AS model). (10marks)

ii) Briefly discuss what factors during the great depression hindered this self correcting adjusment process. ( 8 marks)