Question 3In the Classical Model, an increase in the money s
Question 3In the Classical Model, an increase in the money supply does not affect the level of output or employment. Explain.Question 4In the Keynesian model, what are the forces that cause an economy to settle at an equilibrium level of GDP that does not ensure full employment? (Hint: Explain why the amount of savings will exceed the amount of investment at the full employment level of GDP).Question 5In the Austrian framework, an expansion of the money supply by the central bank causes an unsustainable boom in the economy that is followed by a bust. Explain. (Make use of the Hayekian Triangle if you think it is necessary).
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