I need help with parts D and E.

1.) Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in each of the situations below and explain why.

2.) Sketch an AD/AS Curve diagram for each of the situations. Your graph should include the vertical potential GDP, and the aggregate demand and aggregate supply curves. Explain what happens to the price level, employment level and output gap after the appropriate fiscal policy is used.

D.) Rising inflation. Currently, the economy is producing at the intermediate zone of the aggregate supply curve.

E.) A Rise in Oil Prices. Make your own assumption of the original equilibrium.