The Following Question Has Three Parts, Which Are to Be

Essay

The following question has three parts, which are to be answered independently of each other. Graphically show your response to the following shocks in the AD-AS model:
A) If a new round of consumer pessimism abounds, what would happen to the economy's short-run growth rate?
B) If there is a positive, but temporary, monetary shock, what would happen to the economy's short-run growth rate?
C) If a country's imports temporarily increase, but exports stay the same, what would happen to the economy's short-run growth rate?