Problem
Use standard AD-AS and IS-LM analysis to illustrate and explain the impact of a monetary expansion in the short run and in the medium run. In your answer, explain why monetary policy is effective in the short run and neutral in the medium run. Use standard AD-AS and IS-LM analysis to illustrate and explain the impact of a monetary expansion in the short run and in the medium run. In your answer, explain why monetary policy is effective in the short run and neutral in the medium run.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.