i am doing a past paper and need some help with these questions.

ECONOMICS FOR BUSINESS STU X Course Hero X W Marginal revenue - Wikipedia X + X > C A brightspace.bournemouth.ac.uk/d21/le/content/65834/viewContent/952921/View R G SECTION B - MACROECONOMICS Answer ONE question (3 or 4) from SECTION B QUESTION 3 REQUIRED: Answer parts a to c. a. Suppose the central bank expands the money supply, but because the public expects this action, it simultaneously raises the price level. What will happen to output and the price level in the short run? Compare this result to the outcome if the central bank expanded the money supply but the public didn't change its expectation of the price level. (18 marks) b. Suppose that the economy is currently in a recession. If policy makers take no action, how will the economy evolve over time? (18 marks) c. Explain whether each of the following events shifts the short run aggregate supply curve, the aggregate demand curve, both or neither. For each event that does shift a curve, describe the consequences for AS-AD equilibrium price level and output. (14 marks) 1. 11. Households decide to save a larger share of their income. Cattle farmers suffer a prolonged period of foot and mouth disease which cuts average cattle herd sizes by 80 per cent. III. Increased job opportunities overseas cause many people to leave the country. (Total 50 marks) QUESTION 4 Reflect in ePortfolio Download