question 1.Assume the economy initially is at full employment (potential output). Illustrate the short- run effects of each of the following:

A)A dramatic increase in consumer confidence.

B)A dramatic increase in government spending.

C)A collapse in the economies of Europe.

D)Dollar appreciation.

E)Contractionary fiscal policy

F)Expansionary monetary policy.

question 2. Explain the monetary and fiscal policy response to Covid. Is this policy response best described as Classical or Keynesian? Why?

question 3. In the U.S currently, where do you think the economy is at relative to the LAS curve? Explain.

Are you concerned with unemployment? Employment levels? Inflation?

What would be your recommendation concerning fiscal policy? Explain.

question 4.picture

8. Sticking with our one person R.C economy, assume he produces only one good, fish: No. of Price of Nominal Real GDP Year Fish Fish GDP GDP Deflator 2020 $1.00 2021 $1.20 aANN 2022 $1.20 2023 $1.32 A) Assuming 2020 is the base year, complete the above chart. B) Using the formula, Real GDP = (Nominal GDP)/(GDP Deflator), show your calculation of 2023 Real GDP