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For this question, specify what happens in the money market, goods market and labor market, when appropriate (use IS-LM diagrams and AS-AD diagrams when necessary).
For this question, specify what happens in the money market, goods market and labor market, when appropriate (use IS-LM diagrams and AS-AD diagrams when necessary). 1. Explain using graphs and words why and how the AD curve shifts when money supply increases. 2. Explain using graphs and words why and how the AD curve shifts when there is an increase in the government spending. 3. Explain using graphs and words why and how the AD curve shifts if there is an increase in autonomous consumption (recall that this is the share of consumption that does not depend on disposable income. So with our linear consumption function C = Co + Cl(Y - T) autonomous consumption is Co). 4. Explain using graphs and words why and how the AS curve shifts in the short run (when expected price level is fxed) and medium run (when expected price level is equal to the equilibirum price level) if there is an increase in markups. 5. Explain using graphs and words why and how the AS curve shifts in the short run and medium run if there is an increase in unemployment benefts
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