Question: Explain clearly.. MSg MS1 7 6 Interest rate (percent per year) b 5 4 3 2.8 2.9 3.0 3.1 3.2 3.3 Real money (trillions of

 Explain clearly.. MSg MS1 7 6 Interest rate (percent per year)b 5 4 3 2.8 2.9 3.0 3.1 3.2 3.3 Real money(trillions of 2000 dollars] Lutfen birini secin: O movement from point ato point b along the supply of money curve MS0. O shift

Explain clearly..

from the supply of money curve M$1 to the supply of moneycurve MSO. O shift from the supply of money curve MS0 tothe supply of money curve MS1. O movement from point b topoint a along the supply of money curve MS0.MSo MS 7 Interest

MSg MS1 7 6 Interest rate (percent per year) b 5 4 3 2.8 2.9 3.0 3.1 3.2 3.3 Real money (trillions of 2000 dollars] Lutfen birini secin: O movement from point a to point b along the supply of money curve MS0. O shift from the supply of money curve M$1 to the supply of money curve MSO. O shift from the supply of money curve MS0 to the supply of money curve MS1. O movement from point b to point a along the supply of money curve MS0.MSo MS 7 Interest rate (percent per year) O 2.8 2.9 3.0 3.1 3.2 3.3 Real money (trillions of 2000 dollars) In the figure above, an increase in the interest rate would create a change such as a Lutfen birini secin: O movement from point b to point a along the supply of money curve MSO. O movement from point a to point b along the supply of money curve MS0. O shift from the supply of money curve M$1 to the supply of money curve MSO. shift from the supply of money curve MS0 to the supply of money curve MS1.In Aggregate demand and aggregate supply framework in the short run we assume that Lutfen birini secin: O money wages are flexible O prices are always fixed O real gap is always equal to potential gap O money wages are fixedSuppose the economy is experiencing an inflationary gap. In the long run, if aggregate demand does not change the money wage rate unemployment and the price level Lutfen birini secin: O falls; falls; falls O falls; rises; falls O rises; rises; rises O rises; falls; rises

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