Homework Monetary and Fiscal Policy using the AS-AD mod

Homework
Monetary and Fiscal Policy using the AS-AD model. Assume the economy is closed and is initially at the medium run. Answer the following questions concerning policy.
Suppose the Federal Government wishes to conduct expansionary fiscal policy (assume by changing G). Using IS-LM and AS-AD show the effects from a fiscal expansion. Label the original equilibrium as point A and the new equilibrium as point B. State the changes in prices output and the nominal interest rate.
Explain why the changes in consumption and investment are ambiguous in the short run. Under the fiscal expansion only what can we say about how these two variables would change in the new MR (compare with original MR)?
Suppose the central bank could accommodate the fiscal policy to remove the ambiguity in both C and I using expansionary monetary policy.
How would the central bank do this?
How would C and I change under this mixed policy?
On the same set of graphs in part a. show the effect on the interest rate and output under this policy mix. (Label this equilibrium as point C.) How do the interest rate and output change with the policy mix (compare previous MR with this SR instead)?
On the same set of graphs show the new medium run equilibrium. (Label this as point D.) Was the central bank successful in avoiding the crowding out effect in the medium run? Why or why not?
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