HELP, please

Q1 [60 points] Briey, but not unsatisfactorily, answer the following questions. a) Using the Keynesian cross model where the goods market equilibrium is determined and analyzed, graphically derive the IS curve, and explain each step. Explain what the equilibrium in the goods market implies for the IS curve, i.e., why is the IS curve downward sloping. Also, explain what causes shifts in the IS curve. b) First, based on the analysis of the nancial market equilibrium, graphically derive the LM curve. Explain what the LM curve is and explain in detail why it has its particular shape. Explain what causes shifts in the LM curve. c) Suppose that the FED sells a. large amount of bonds (say, treasury securities) through open market operations. Graphically illustrate and explain in detail what effect this operation will have on the LM curve and the Is curve. Also explain if it cause a shift in the IS and LM curve? :1) Suppose that the US government reduces government spending (G) to reduce the budget decit (G-T>O). Graphically illustrate and explain in detail what effect this policy will have on the LM curve and the IS curve. Also explain if it cause a shift in the IS and LM curve? Q3 [30 points] What is the policy mix? Explain why governments and centrals banks use a policy mix when either one on its own could achieve the desired increase in output. Is it true that sometimes, the right mix is to use scal and monetary policy in the same direction? Explain in detail with an example and graphical illustration (suppose there is a simultaneous increase in government spending and increase in the money supply). Q3 [30 points] Is it also true that sometimes, the right policy mix is instead to use the policies in opposite directions, for example, combining a scal consolidation with a monetary expansion? Explain in detail with an example (combining a. scal consolidation with a monetary expansion) and graphical illustration