Macroeconomics     (Final)

1.  a) Show and explain the equilibrium in the goods and money market?

     b) Show and explain how increase in real money stock can change the equilibrium.

2. a) Show and explain the effects of a fiscal expansion on the aggregate demand (AD) curve.

    b) Show and explain full crowding out effect by using AD and AS curves.

3.Explain what you understand from rational expectations. Show and explain the effects anticipated increase in money supply in terms of rational expectations equilibrium approach.

4. Show and explain the dynamics of inflation in the case of fiscal expansion?

5. Show and explain the dynamics of inflation in the case of an increase in monetary growth.