1. How does monetary policy affect aggregate demand in the short
run? How does monetary policy affect aggregate demand in the long
run? 2. What is meant by the demand for money? Which way does the
demand curve for money slope? Why? 3. Explain how an active policy differs from a passive
policy? 4. Expalin why the Fed can attempt to target either changes in
the money supply or changes in interest rates, but not both. 5. Explain how the short-run Phillips curve, the long-run
Phillips curve, the short-run aggregate supply curve, the long-run
aggregate supply curve, and the natural rate hypothesis are all
related. How do active and passive views of these concepts
differ? Your response should be at least 75 words in lentgh. Purchase the answer to view it Purchase the answer to view it
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