I will post the full question so which has 3 parts to it.

4. (i) Explain the central bank's loss function and how are the central bank's preferences

reflected in the loss function? [3]

(ii) Assuming = = 1 in the Loss function and the Phillips curve, derive the MR curve

graphically and explain the economic intuition behind the process. [7]

(iii) Using the 3-equation model, provide a detailed period by period analysis of the

adjustment process for the case where the economy is hit by a permanent positive

aggregate demand shock.

I have posted this questions a good few timea now and it seems to have been answered incorrectly everytime.

Thanks

There is no more information that i can add.