Q5. Use the AD-AS and the Philips curve diagrams to show the short-run effects on prices (inflation) and output (unemployment)with following scenarios:

1. Governmentexpendituresincrease.
2. Businessesbecomelessoptimisticaboutthefuture.
3. Consumerconfidencerises.
4. Netexportsfallduetorecessionsinforeigncountries.
5. IftheCentralBankwantedtoreversetheeffectsofthoseshocksonoutput(senarios (a) to (d)),whatshoulditdo?For each senario, explain and show inthe AD-AS and the Philips curve diagrams.
6. Assumethatthe CentralBank now do nothing,In order to maintain output what would government do with fiscal policy in response tothosescenarios?Explain and show inthe AD-AS and the Philips curve diagrams.