Question: MACRO- Long run AS and the Phillips Curve. Please answer all questions correctly and I will upvote!! I need this as soon as possible, thank

MACRO- Long run AS and the Phillips Curve. Please answer all questions correctly and I will upvote!! I need this as soon as

MACRO- Long run AS and the Phillips Curve. Please answer all questions correctly and I will upvote!! I need this as soon as possible, thank you!

possible, thank you! 3. Suppose that policymakers increase government spending resulting in

full employment. Show the result this fiscal policy action on both graphs.

3. Suppose that policymakers increase government spending resulting in full employment. Show the result this fiscal policy action on both graphs. Label this new equilibrium point "B". Identify what happens to inflation and unemployment in the short-run. 4. Suppose that policymakers now cut consumer taxes resulting in a positive output gap. Show the result of this fiscal policy action on both groups. Label the new equilibrium point "C". Identify what happens to employment in the short-run. 5. At point "C", what will happen to wages and resources prices in the long-run? Explain. Macro Problem Set 3-Part 3 Name: Period: 6. Given your answer to question #3, show how both models adjust in the long-run and label the final equilibrium point "D". Identify what will happen to inflation and unemployment at point "D" compared to when the economy was at point "C". 7. Identify what happened to real output at point "D" compared to when the economy was at point "B". Explain

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