Question: a . Let's run through some examples of how this might work, in a setting where the Fed wants to keep AD growth stable at

a. Let's run through some examples of how this might work, in a setting where the Fed wants to keep AD growth stable at \(10\%\). To keep things simple, we will assume that the Fed can control money growth perfectly. We will also assume that a \(1\%\) change in money growth causes a \(0.5\%\) shock to velocity growth in the same direction. Using these assumptions, fill in the missing values for the following table. For each case:
\(\mathrm{AD}=\) Initial Velocity Shock + Money Growth
+ Velocity Shock Caused by Money Growth
Round your answer to the nearest hundredth.
Year 2 money growth:
\% Year 2 velocity shock:
\% Year 3 velocity shock:
Year 3 money growth:
\%
\%
a . Let's run through some examples of how this

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