Consider the ADAS model, where the central bank has been successfully targeting an inflation rate of 2% per year for a long time, and where the economy has come to expect an inflation of 2% per year in the future. The potential output is fixed, and there are no other demand and supply shocks. 1. What is the unemployment rate and the inflation rate in the economy? Explain your answer. 2. Suppose the central bank surprises the economy by increasing the growth rate of the money supply. What happens to the unemployment rate and the inflation rate in the short run? What about in the long run? 3. Using this question, explain why it is important for central banks to be independent from the government? Consider the ADAS model, where the central bank has been successfully targeting an inflation rate of 2% per year for a long time, and where the economy has come to expect an inflation of 2% per year in the future. The potential output is fixed, and there are no other demand and supply shocks. 1. What is the unemployment rate and the inflation rate in the economy? Explain your answer. 2. Suppose the central bank surprises the economy by increasing the growth rate of the money supply. What happens to the unemployment rate and the inflation rate in the short run? What about in the long run? 3. Using this question, explain why it is important for central banks to be independent from the government