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Hi I Need Help With The Following Microeconomic Questions 2 How Does Monetary Po

Hi I need help with the following microeconomic questions:

2. How does monetary policy affect the share market?

3a. Referring to the above graph: Given that the economy has moved from A to B what would be the appropriate fiscal policy to achieve potential GDP and why?

3b. Referring to the above graph: If fiscal policy is successful at moving the economy from point B to equilibrium at potential GDP, what happens to unemployment and what impact will this have on the government’s budget?

Please note there are 4 questions!

Thank you!

  • Attachment 1
  • Attachment 2


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