You Are the Chairperson of the Board of Governors of the Federal

Essay

You are the chairperson of the Board of Governors of the Federal Reserve.You believe in a Keynesian model of the economy,and your goal is to keep the economy at the full-employment level of output.How would you respond (tightening or easing policy)in each of the following cases?
(a)Government purchases increase
(b)Corporate tax rates increase
(c)Expected inflation increases
(d)There's a beneficial oil price shock (and the LM curve shifts more to the right than the FE line)