Assume the economy is at full employment. Use the IS-LM/ AD-AS
model to show the short-run and long-run impacts of a
positive demand shock such as an increase
in business confidence and investment spending on: the real
interest rate (r), real GDP (Y), unemployment (U), consumption
spending (C), the nominal money supply (M), the price level (P) and
the real value of the money supply(M/P). You must present properly
labeled (IS-LM and AD-AS diagrams to show the SR and LR...