Q: Let's consider a long term model with sudden demand shock. The demand function is : (M/P)D=a0+a1Y-a2(r+7te). aO refers to the shock. (a)For example, one day the exchange cost between bond and physical money suddenly becomes zero. Suppose people's expenditure is constant, how will the demand for money change? (hint: the demand for cash) (b)The conditions are the same as (a). In the long run, how will the price level P change