The economy of Djibulistan is initially in long-run equilibrium. Then the Central Bank of Djibulistan increases the money supply. a. Assuming unexpected inflation as a result of the above-mentioned policy, explain any changes in output, unemployment, and inflation that are caused by the monetary expansion. Explain your answer and conclusions using three graphs: IS-LM, AD-AS, and the Phillips curve.  b. Assuming instead that resulting, inflation is expected, explain any changes in output, unemployment, and inflation that are caused by the monetary expansion. Explain your answer and conclusions using three graphs: ISLM, AD-AS, and the Phillips curve.

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Unemployment and Cost of Unemployment

Unemployment is the state of being unemployed, even when an individual is actively seeking work opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed.