Assume that output y is currently at the full employment, Business Economics

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Assume that output y is currently at the full employment

Assume that output (Y) is currently at the full employment level. Explain the short-run and long-run effects of the following policy measures. Support your answer with an IS-LM and AD/SRAS and LRAS diagrams.

A) An expansionary monetary policy on (1) output level, (2) price level, and (3) interest rates.

B) An expansionary fiscal policy on (1) output level, (2) price level, and (3) interest rates.

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Business Economics: Assume that output y is currently at the full employment

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Business Economics: Assume that output y is currently at the full employment

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