1. Use annotatedAD/ASgraphs to predict the impact of each of the following fiscal policies on equilibrium output (GDP) and price level. (6)
2. an increase inGwith no change inTwhen the economy is in recession
3. an increase inTwith no change inGwhen the economy is suffering inflation
4. increases in bothGandTwhen the economy is in recession
5. A decrease in government purchases (G) of $8 billion leads to an initial decrease in withdrawals of $4.4 billion. (6)
6. Find the values of theMPW,MPC, andMin this economy.
7. State the direction and size of the shift in theADcurve.
8. Draw a graph to illustrate the policy's likely effects, given a starting equilibrium price level and output of 130 and $650 billion.

2. Use annotated AD/AS graphs to predict the impact of each of the following fiscal policies on equilibrium output (GDP) and price level. (6) a. an increase in G with no change in Twhen the economy is in recession b. an increase in Twith no change in G when the economy is suffering inflation c. increases in both G and Twhen the economy is in recession 3. A decrease in government purchases (G) of $8 billion leads to an initial decrease in withdrawals of $4.4 billion. (6) a. Find the values of the MPW, MPG, and M in this economy. b. State the direction and size of the shift in the AD curve. c. Draw a graph to illustrate the policy's likely effects, given a starting equilibrium price level and output of 130 and $650 billion