Question: 2 Comparing Monetary Policy under different assumptions. (5 pts) For Part 2 of this assignment, compare the effects of the same shock in different version

2 Comparing Monetary Policy under different assumptions. (5 pts) For Part 2 of this assignment, compare the effects of the same shock in different version of the model. Questions: (f): Suppose we have a closed economy model with neutral money. (ch12) The monetary agency increases the money supply. sketch the effects of this shock. W MS XXL MD -M (g): Suppose we have a Keynesian sticky prices model. (ch14) The interest rate is initially above the natural rate of interest. The monetary agency increases the money supply. sketch the effects of this shock. W (h): Qualitatively describe the differences between these different versions of the model

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