3. a. Now consider, you will use monetary policy to restore the output back to the...

3. a. Now consider, you will use monetary policy to restore the output back to the maximum level. Explain by drawing the market of money, how monetary policy will work in this case.

b. Explain (using graphs) the 2 scenarios when monetary policy is ineffective.

output below

Expert Solution

Rahul Sunny answered 2 years ago

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