For each of the following situations, describe how (if at all) the IS, MP, and AD curves are affected.

1. A decrease in financial frictions

2. An increase in taxes and an autonomous easing of monetary policy

3. An increase in the current inflation rate

4. A decrease in autonomous consumption

5. Firms become more optimistic about the future of the economy.

6. The new Bank of Canada governor begins to care more about fighting inflation.