need help with 2 homework problems thanks

6. Selffullling Prophecies 1: Suppose that everyone all of a sudden expects prices to rise, so PE goes up. Show what happens in the short-run after such an increase in expectations of future prices. In particular, do prices end up rising or falling? 7. Self-fullling Prophecies 2: Suppose that consumers become more pessimistic about future incomes (CS) and rms become more pessimistic about future prots (SP). Consider the response of the economy to this dual shock in the shortrun How did this increased general pessimism affect the economy and people's incomes