Mundell-fleming and ad-as models

Reference no: EM133504351

Part: Mundell-Fleming and AD-AS Models

List that policy mix in Part A of this Policy Response research report, and then illustrate and fully explain the short-run and long-run effects of the fiscal and monetary policy mix, ceteris paribus (holding other things equal), using the Mundell-Fleming (IS*-LM*) and AD-AS modelling frameworks. Assume the economy was initially in long-run equilibrium. Below are a few tips to consider when writing Part A.

TIPS:

• Part 1 does not require collecting data for economic indicators.

• Do not provide details of the implemented policies. Instead, you only need to state whether the overall fiscal policy of your allocated country was expansionary or contractionary in 2022 and whether the overall monetary policy of your allocated country was looser (expansionary) or tighter (contractionary) in 2022.

• To illustrate the short-run and long-run economic impacts, you must include the Mundell-Fleming (IS*-LM*) and AD-AS model graphs. The graphs should clearly show the relevant movements of the curves and equilibrium variables. Ensure your graphs align with the appropriate IS*-LM* and AD-AS modelling frameworks. All allocated countries have floating exchange rates, so use the relevant IS*-LM* model

. • To explain the economic effects, you must refer to your IS*-LM* and AD-AS graphs.

Reference no: EM133504351

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