In each case plot the three figures IS/LM/BP as instructed and choose the best policy to be implemented in order to improve the economy. Please note that you will not get full grade if the figure and necessary adjustments are not clearly visible on the graph to support your answer.

1. Fixed exchange rate with free capital mobility while we have recessionary gap.

2. Floating exchange rate with free capital mobility while we have recessionary gap.

3. Floating exchange rate withy strict capital mobility while we have recessionary gap.

4. Fixed exchange rate with strict capital mobility while we have recessionary gap.