please give an explantation to each question answer.

35 36 37 Which of the following policy combinations would foster long run growth of an economy without incretsing the price level? Monetary Policy (A) Buy bonds (B) Sell bonds (C) Buy bonds (D) Sell bonds (E) Buy bonds Fiscal Policy Increase govemment spending Increase govemment spending Decrease govemment spending Decrease govemment spending Decrease income taxes If a country is experiencing a recessionary gap, which ofthe following fiscal and monetary policy combinations would he most likely to move the nation closer to full employment with a minimum change in Interest rates? (A) A decrease m govemment spending and a decrese in taxes (B) An increase in govemment spending and the purchse of bonds on the open market (C) A decrease in taxes and an increase in the discount rate (D) An increase m taxes and a decrease in the federal funds rate (E) the sale of bonds on the open market and a decrease in govemment spending The opportunity cost of holding money in the form of cash increases when (A) the velocity of money increases (B) interest rates increase (C) nominal wages decrease (D) the price level falls (E) aggregate demand decreases 38 39 Ifthe economy is operating below full- employment output, assuming that wages and prices are flexible, long run equilibrium can he restored by which of the following" (A) Raising the fed funds late (B) Authorizing contractionary fiscal policy to inerexse aggregate demand (C) Enacting no policy since lower wages will result in a return to full emplloyrment (D) An open market sale of government bonds hy the central hank (E) Raising personal income taxes RGDP In the graph above, assume wages and prices are perfectly flexible, and a starting equilibrium point of AD2 and SRAS2. Ifthis economy experiences demand-pull inflation, identify both the short run and long run shifts in the aggregate demand and short run aggregate supply curves. Short Run Long Run (A) AD2 to AD3 SRAS2 to SRAS, (B) to ADI SRAS2 to SRASI (C) AD2 to SRAS, to SRASg (D) SRAS2 to SRAS, ADI (E) SRAS2 to SRAS3 AD2 to