ECONOMICS QUESTION - macroeconomics

l. The policy mix xed exchange rate - the assignment Use the policy mix graph to show how the policy makers can bring an economy with balance of payments surpluses and the economy beyond full employment to a stable level of output at full employment. a. Label the IB and the EB lines and name the axes name E the point where the economy reaches both its internal and external balances. b. Show as point A (star in my graph) the position of the economy with respect to the [B and EB lines. c. Specify the assignment necessary to bring the economy to its intemalfexternal equilibrium: d. Show on the graph above the path to equilibrium. e. Now use the IS-LM-BP set-up below to illustrate the comparative static aspect: i.e. show the original equilibrium of the economy as A and the final equilibrium as E. ECON 472 Name: Autumn 202.0 FE BP