Provide a detailed answer for each of the following questions. Use should use diagrams and graphs to aid in your answer. Cite your sources
1.Explain why the aggregate-supply curve is vertical in the long run. Why might the long-run aggregate-supply curve shift?
2.Use the liquidity-preference theory to explain why the demand for money slopes downward.
3.What is the theory of rational expectations? How does it apply to the debate about the trade off between inflation and unemployment?
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