Question: 1. Using the DD-AA model, analyze the output and balance of payments effects of the temporary contractionary fiscal policy under floating exchange rates. How about

1. Using the DD-AA model, analyze the output and balance of

1. Using the DD-AA model, analyze the output and balance of payments effects of the temporary contractionary fiscal policy under floating exchange rates. How about temporary fiscal expansions? (15%) 2. Using the DD-AA model, analyze the output and balance of payments effects of the temporary contractionary monetary policy under floating exchange rates. How about temporary monetary expansions? (15%) 1. Using the DD-AA model, analyze the output and balance of payments effects of the temporary contractionary fiscal policy under floating exchange rates. How about temporary fiscal expansions? (15%) 2. Using the DD-AA model, analyze the output and balance of payments effects of the temporary contractionary monetary policy under floating exchange rates. How about temporary monetary expansions? (15%)

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