By using clearly labeled AS and AS curves to illustrate your points, discuss the impacts of the following events on the equilibrium price level and equilibrium level of output in the short run.
(a) An expansionary fiscal policy with the economy operating near full capacity.
(b) A contractionaey monetary policy during a period of high unemployment and excess industrial capactiy.
(c) A strong hurricane destroys energy plants which cause energy prices to increase, assuming that the Fed attempts to keep interest rates constant by accommodating inflation.
(d) A contractionay fiscal policy supported by a coopoerative Fed acting to keep output from falling.