The IS-LM model is often used to explain economic fluctuations and the impact of government monetary and fiscal policies. (a) Explain the definition of the IS curve and the LM curve. Use pictures to make your explanation easier. (b) Explain how the transmission of fiscal and monetary policy in influencing national income. (c) Explain how to derive the Aggregate Demand curve using the IS-LM model framework.

help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working

QUESTION 1 To determine the price level and aggregate output, the aggregate demand and aggregate supply must be considered separately. be disregarded. be considered as a multiplier. intersect. QUESTION 2 Automatic stabilisers are variables under the control of private sector decision-makers that push the macroeconomy towards equilibrium. government policies that automatically adjust to smooth the economic cycle. central bank decisions that smooth out the exchange rate. changes in production by firms when inventories vary from their planned level.

===>Please give me proper explanation 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.

Attached: figure 1: Hayek’s (Classical) AD-AS Model Question 1  Why does Hayek’s aggregate supply curve always lead to an equilibrium level of national output equal to the full-employment level of real GDP? Question 2  Hayek says that markets will heal themselves and that government should not intervene. How does the AD-AS model reflect Hayek’s idea that governments cannot increase real GDP beyond the level that the free market economy is able to produce? Question 3 Do you believe that the Hayek’s classical AD-AS model explain the factors that cause changes (shifts) in AS realistically? Why or why not?

A) Discuss, with examples, factors or events that might shift the short run aggregate supply curve. B) Imagine an economy is in long run equilibrium. Now suppose that firms experience an increase in their cost of production (say, due to a natural disaster). i. Explain, with graphs, the macroeconomic impact of such an increase in production costs. ii. Describe how policymakers could use fiscal policy to counteract the effects of increased cost of production.

Identify the most significant sources of disruption over the past several years and propose policies to address them. Consider the following factors in your response: How will your policy recommendations impact Aggregate Demand and Supply? Discuss the potential trade-offs associated with different program options. Evaluate the effects of the proposed policies on future economic growth possibilities, including their impact on the Production Possibility Frontier (PPF) and long-run aggregate supply. Analyze the potential effects of the policies on debt and budget deficits. Assess the impact of the policies on private investment and discuss whether crowding out is a concern in the short run versus the long run. Examine how your proposals may affect income distribution, consumer confidence, and spending. Predict the potential effects of your policy recommendations on GDP growth, price levels, and employment.

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Please note that this is a multi part quesition; thank you so much for your time and effort it means so much to me! Figure 1: Hayek’s (Classical) AD-AS Model (Image normally goes here)   Part 1: Why does Hayek’s aggregate supply curve always lead to an equilibrium level of national output equal to the full-employment level of real GDP?         Part2: Hayek says that markets will heal themselves and that government should not intervene. How does the AD-AS model reflect Hayek’s idea that governments cannot increase real GDP beyond the level that the free market economy is able to produce?         Part 3: Do you believe that the Hayek’s classical AD-AS model explain the factors that cause changes (shifts) in AS realistically? Why or why not?