Suppose that the Bank of Canada has a policy of increasing the money supply when it observes that the economy is in recession. However, suppose that about six months are needed for an increase in the money supply to affect aggregate demand, which is about the same amount of time needed for firms to review and reset their prices and for employees and firms to complete current wage contracts. What effects will the Bank's policy have on output and price stability? Does your answer change if (a) the Bank has some ability to forecast recessions or (b) wage and price adjustment take longer than six months?