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To fight a inflation (25 Points) a) How should the government execute Fiscal Policy? ) How should the Federal Reserve Bank execute Monetary Policy? Make

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To fight a inflation (25 Points) a) How should the government execute Fiscal Policy? ) How should the Federal Reserve Bank execute Monetary Policy? Make sure to include the appropriate graphs, equations, and analysis and how these policies each affect C,I, G, AD, AS, P, Q, inflation, Unemployment, GDP and economic growth. What would happen in the short-run and long-run to C, I, G, NX, AD, AS, P, Q, inflation and economic growth if the Federal Reserve Bank increased the money supply? Make sure to include the 4 tools for how they would increase the money supply and how this would impact 1) interest rates (include a money graph) and 2) Inflation and output (using the AD/AS graph.) (20 Points) if we increase government spending on education and infrastructure how will this mpact AD/AS in the (30 points). Make sure to include a Goods graph for each model: ) Classical Model Keynesian Model ) Supply-side Model

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