Draw fully labeled graphs.
(a)
Use the financial market diagram to derive the LM curve when
there is an interest rate target. Explain.
(b)
What is the slope and intercept of the LM curve when there is an
interest rate target?
(c)
When is fiscal policy more effective at changing the level of
output: when the central bank maintains a fixed real money supply
or when the central bank sets an interest rate target? Draw the
IS-LM model and explain.
Graphically illustrate the long-run aggregate supply curve.
Explain how you derive this curve with at least 200 words.
Note:please explain in detail and please don't write HANDWRITING
because I don t understand your HANDWRITING
ITS my book : Principles of Economics (12th Edition)