1. Show in the aggregate demand - aggregate supply framework
(AD/AS) an economy in long-run equilibrium. 2. Again in the AD/AS
framework, show an economy with an inflationary gap and then show
the effects of additional stimulus, say a tax cut, on this economy
in the short-run. 3. Suppose that after the stimulus a trade war
involving intermediate goods breaks out, reducing aggregate supply.
Show the long and short-run effects of this trade war being very
clear about price level,...