MACROECONOMICS

QUESTION 5 When the Fed changes monetary policy to reduce the rate of inflation, which of the following should occur in the medium run? 0 The AD curve should shift to the right. 0 The IA line should shift down. 0 The AD curve should shill to the left. 0 The IA line should shift up. QUESTION 6 Compared to the baseline, the long-run effect of a monetary policy change to reduce the rate of inflation is for there to be 0 an increase in investment and net exports along with a decrease in consumption. 0 an increase in consumption, a decrease in investment, and no change in net exports. 0 an increase in consumption and net exports and a decrease in investment. 0 no change in consumption, investment, and net exports