Please Answer correctly!

QUESTION 35 "For the next five questions, use the following scenario with our IS-MP and Phillips curve model. The economy begins in 1=0 with short-run output = 0 and inflation at the central bank's target. The economy experiences a shock from financial frictions. What would short-run output be in t = 1?" O greater than zero O equal to zero O less than zero O not enough information to determine QUESTION 36 What would the inflation rate be in period t = 1? O greater than central banks inflation target O equal to central bank's inflation target O less than central bank's inflation target O not enough information to determine QUESTION 37 How should the central bank respond to this shock? O lower interest rates to increase short-run output O lower interest rates to decrease short-run output O raise interest rates to increase short-run output O raise interest rates to decrease short-run output QUESTION 38 Will the central bank's policy always be effective? O "Yes, lowering interest rates will always eliminate the effect of financial frictions" O "Yes, raising interst rates will always eliminate the effect of financial fricitions" O "No, lowering interest rates may not eliminate the effect of financial frictions" O "No, raising interest rates may not always eliminate the effect of financial frictions" QUESTION 39 What other policies could the central bank use to address financial frictions? O buying assets in markets with financial frictions O expanding its balance sheet O guiding expectations about future path of interest rates O All of the above