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Suppose the following information:Monetary policy curve, ( MP ) : = 2 + IS curve: = 2 0 2 1 . Derive an expression for

Suppose the following information:Monetary policy curve, (MP): =2+ IS curve: =2021. Derive an expression for the aggregate demand (AD1) curve.2. Suppose that increases to =2. Derive a new expression for the aggregate demand (AD2) curve and graph.3. Compare your answers in 1 and 2 regarding the behavior of the Fed towards this changes.

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