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I can't solve the problem sir 1. Assume that Chinese economy is in long-run equilibrium. Please illustrate and give explanations to 4 the following questions

I can't solve the problem sir

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1. Assume that Chinese economy is in long-run equilibrium. Please illustrate and give explanations to 4 the following questions using one graph: a) b) C) (0 Use AD-AS model to illustrate the initial equilibrium point A (be sure to include both short-run and long-run AS curves); Suppose that Chinese central bank raises the money supply by 3%, use your diagram to Y and P as the economy moves to the new short run equilibrium point B; Show the new long-run equilibrium using point C. Please explain what causes the economy to move from equilibrium point B to equilibrium point C; Using the sticky-wage theory of aggregated supply, explain how do nominal wages at eq. point A compare to nominal wages at point B? How do nominal wages at point A compare to nominal wages at point C? Using the sticky-wage theory of aggregated supply, explain how do real wages at eq. point A compare to real wages at point B? How do real wages at point A compare to real wages at point C? Judging by the impact of the money supply on nominal and real wages, is this analysis consistent with the proposition that money has real eects in the short run but is neutral in the long run

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