Demonstrate the effect of expansionary monetary policy in the AS/AD MODEL when the economy is-Below potential ouput and b. significantly above potential output. Q 2. Assume that a countrys real growth is 2 percent per year, while its real deficit is rising 5 percent a yeaar. an the country continue to afford such deficits indefinitely? what problem might it face in the future? Q 3. Demonstrate using supply and demand curves, why Argentina had to give up it fixed exchange rate in 2001? Q 4. In the late 1990 a growing number economists argue that world policymakers were focusing too much on fighting inflation. The economists also argue that the technical level of potential output had risen. Show their argument using the AS/AD model.