The economy achieves its maximum growth at = 1.06. The points picked on the growth cycle are = 1.058 for Y1 before the peak and = 1.058 for Y2 after the peak.

Answer the following, with brief explanations:

1. What are the stock prices doing?
2. What are bond prices and yields doing?
3. Given your equation for the money market, explain how P moves?
4. Provide atablesummarizing the equilibrium changes in: Y CriBPPBPS