Question: Please help if you actually can! Please don't copy and paste other answers on the internet they aren't helping me. Thank you! Question 2 Consider

Please help if you actually can! Please don't copy and paste other answers on the internet they aren't helping me. Thank you! Please help if you actually can! Please don't copy and paste other

Question 2 Consider the AD-AS model discussed during the lectures. Assume that the aggregate demand curve is given by Y=8-0.5 11, that the long run aggregate supply curve is given by Yp=7, that the short run aggregate supply curve is given by n = 11_expect + 0.3(Y-Yp), and that the monetary rule is given by r=1+0.3 11. (c) Is fiscal policy more useful, less useful or equally useful compared to monetary policy to avoid the loss of confidence generating a recession? Discuss and compare how fiscal and monetary policy can be separately used in response to the dynamics caused by the loss of consumer confidence. (12 marks) Question 2 Consider the AD-AS model discussed during the lectures. Assume that the aggregate demand curve is given by Y=8-0.5 11, that the long run aggregate supply curve is given by Yp=7, that the short run aggregate supply curve is given by n = 11_expect + 0.3(Y-Yp), and that the monetary rule is given by r=1+0.3 11. (c) Is fiscal policy more useful, less useful or equally useful compared to monetary policy to avoid the loss of confidence generating a recession? Discuss and compare how fiscal and monetary policy can be separately used in response to the dynamics caused by the loss of consumer confidence. (12 marks)

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