I want the answers with paragraphs of explanation..

Scenario #1

U.S. was at macro equilibrium and full-employment Qf and P1.The U.S. goes to war, government spending increases.

• Which way will aggregate demand move? ___________(increase or decrease)
• What macro economic problem arises __________(e.g. unemployment, inflation, slow growth)
• If the fed uses OMOs, they must_____(buy or sell) bonds to fix these macro problem(s) and get aggregate demand back to Full-Employment.

Scenario #2

U.S. was at macro equilibrium and full-employment Qf and P1.The U.S. stock market crashes.

• Which way will aggregate demand move? ___________(increase or decrease)
• What macro economic problem arises __________(e.g. unemployment, inflation, slow growth)
• If the fed uses OMOs, they must_____ (buy or sell) bonds to fix these macro problem(s) and get aggregate demand back to Full-Employment.

Scenario #3

U.S. was at macro equilibrium and full-employment Qf and P1.The trading partners of the U.S. are experiencing a recession and stop buying goods from the United States.

• Which way will aggregate demand move? ___________ (increase or decrease)
• What macro economic problem arises __________(e.g. unemployment, inflation, slow growth)
• The fed must __________ (increase or decrease) the discount rate to fix these macro problem(s) and get aggregate demand back to Full-Employment.

Scenario #4

U.S. was at macro equilibrium and full-employment Qf and P1.U.S. citizens are optimistic about the future and have expectations of higher future incomes.

• Which way will aggregate demand move? ___________ (increase or decrease)
• What macro economic problem arises __________(e.g. unemployment, inflation, slow growth)
• The fed must __________ (increase or decrease) the discount rate to fix these macro problem(s) and get aggregate demand back to Full-Employment.

Scenario #5

U.S. was at macro equilibrium and full-employment Qf and P1.U.S. experiences several catastrophic events all at once across the U.S. such as tornadoes, hurricanes and earthquakes.

• Which way will aggregate demand move? ___________ (increase or decrease)
• What macro economic problem arises __________(e.g. unemployment, inflation, slow growth)
• The fed must __________ (increase or decrease) the reserve ratio to fix these macro problem(s) and get aggregate demand back to Full-Employment.

Scenario #6

U.S. was at macro equilibrium and full-employment Qf and P1.U.S. negotiates a new favorable trade agreement with the European Union.

• Which way will aggregate demand move? ___________ (increase or decrease)
• What macro economic problem arises __________(e.g. unemployment, inflation, slow growth)
• The fed must __________ (increase or decrease) the reserve ratio to fix these macro problem(s) and get aggregate demand back to Full-Employment.