Answer the following questions, and explain what would happen to the aggregate demand–aggregate supply model when appropriate a Explain what an aggregate demand–aggregate supply model looks like...

Answer the following questions, and explain what would happen to the aggregate demand–aggregate supply model when appropriate

a Explain what an aggregate demand–aggregate supply model looks like in the long run equilibrium

b What happens on your model when aggregate demand increases (ie is there a shift or movement?)

c Is the economy you modeled in an expansion or recession now?

d Continuing with the economy you are building, what type of monetary policy would you suggest be taken by the Federal Reserve?

e What will your suggested policy do to your aggregate demand–aggregate supply model in the short run?