Using the IS/LM and AS/AD framework, discuss what would happen to r, y, and the price level (p) in both the short and long run. Show the IS/LM and AS/AD graphs for full credit.

1. There is an exogenous decrease in money demand.

2. Consumer confidence increases

3.When discussing the classical model I believe there was some discussion of the effects of a balanced-budget increase in government expenditures (G=T). Now let's consider these in a Keynesian model

Suppose that the government increases its expenditures, G>0, but raises taxes by the same amount in order to keep the budget balanced such that G=T

4. Suppose government expenditures (G) are increasing due to a new foreign intervention abroad (insert name of whichever country it might happen to be in this time) at the same time the Fed is implementing a tighter monetary policy (M)