Keynes hypothesized that the speculative component of money demand was primarily determined by the level of Oa. interest rates. Ob. stock market prices. c. income. Od. velocity of money.

 (i) Walras’s law is derived from the budget constraints of all the economic agents in the economy. Can Say’s law be similarly derived from budget constraints? Use the relevant constraints and specify the additional assumptions needed for this derivation. Assess the validity of these assumptions.(ii) What are the implications for monetary policy if both Walras’s law and Say’s law are imposed on the IS–LM model? Assess the likely validity of these implications. If they do not seem to be valid, which of these two laws should be discarded? Derive the implications for monetary policy of imposing the remaining law on the IS–LM model.(iii) Do the modern classical or/and new classical schools effectively reinstate Say’s law as one of their component doctrines? Is so, should they state it explicitly? Discuss 

The economy is hit by the Covid-19 pandemic and affects the short-run aggregate supply. Critically discuss the short-run and long-run effects on output and the price level using the AD-AS diagram: (a) The central bank responded by printing more money.

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

No written by hand solution

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Please be sure to explain why and how to the questions -Thank you

first image is just the resource. second image has the questions 6,7 and 8 * also note This economy’s central bank follows agiven Monetary Policy Rule: r = i = 0.025 × Y + 0.0003 × P , where P is the pricelevel.

An econometric study of the dynamics of monetary policy using U.S. data covering three decades indicates that OA. the IS-LM model accurately captures the short-run behavior of the economy in response to these policies. OB. the IS-LM model fails completely to predict the economy's short-run response to policy changes. OC. only the long-run behavior of the economy is accurately captured by the IS-LM model. OD. use of the IS-LM model for prediction purposes is basically a risky or uncertain estimate. The predictive reliability of the IS-LM model appears to weaken over time because the assumption of a given price level becomes realistic less more