$2.$ Use the dynamic AS$-$AD model to explain the short run and medium run impact of an increase in the growth rate of money supply by the Central Bank on the inflation rate, the unemployment rate, the nominal interest rate, total consumption expenditure and total investment expenditure. Assume that workers have constant inflation expectations.

a$.$ What does it mean to say that workers have constant inflation expectations.

b$.$ Draw the dynamic AS$-$AD model diagram, labeling the axes and the curve clearly.

c$.$ Point out the initial situation of the economy, i$.$e$.$ before the Central Bank increases the growth rate of the money supply.

d$.$ In a separate diagram, redraw the dynamic AS$-$AD model diagram and show the short run impact of the Central Bank's action. Clearly show which curve shifts, where the economy moves. Write in words to explain the changes.

e$.$ In another separate diagram, redraw the dynamic AS$-$AD model diagram starting from where the economy was in the short run equilibrium that you discussed in the previous part and show the medium run impact of the Central Bank's action. Clearly show which curve shifts, where the economy moves $($from the short run to the new medium run equilibrium$).$ Write in words to explain the changes.