Question: 1. Graphically show how expansionary monetary policy can be used to eliminate a recessionary gap. 2. Graphically show how contractionary monetary policy can be used

1. Graphically show how expansionary monetary policy can be used to eliminate a recessionary gap.
2. Graphically show how contractionary monetary policy can be used to eliminate an inflationary gap.
3. Explain why Keynesians are more likely to advocate expansionary monetary policy than contractionary monetary policy.

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