1. Define the basics of the AS/AD framework. How does one combine the Investments and Savings equation and Monetary Poli

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1. Define the basics of the AS/AD framework. How does one combine the Investments and Savings equation and Monetary Poli

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1. Define the basics of the AS/AD framework. How does one
combine the Investments and Savings equation and
Monetary Policy rule to form the AD equation?

2. Explain how the economy responds when the Fed eases monetary
policy. How is an easing of monetary
policy represented in the monetary policy rule? How does the
economy adjust following easing?
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