The medium-run equilibrium is characterized by four conditions: output is equal to potential output y = yn. the unemployment rate is equal to the natural rate u = un. the real policy interest rate is equal to the natural rate of interest rn where aggregate demand equals yn. the expected rate of inflation pe is equal to the actual rate of inflation p. a. if the level of expected inflation is formed so pe equals p1-12, characterize the behavior of inflation in a mediumrun equilibrium. b. if the level of expected inflation is pq , what is the level of actual inflation in the medium-run equilibrium? c. write the is relation as y = c1y - t2 + i1y, r + x2 + g. suppose rn is 2%. if x increases from 3 to 5%, how must the

Construct an example of the cycle of​ money, identify all the players involved and identify their individual benefits from participating in the cycle of money. in the examples of the cycle of money shown​ below, identify all the players involved and identify their individual benefits from participating in the cycle of money. example​ one: ​(select from the​ drop-down menus.) ▾ opens a savings account ▾ with the borrower with the original lender at a local commercial bank with a​ $200 deposit. the ▾ original lender bank borrower loans out the​ $200 with other funds from other savings accounts to ▾ the original lender a local businessman who is expanding his business. the local businessman pays back the loan over time with interest and the bank credits the savings account with interest. the individual withdraws money from the savings account to buy a new bike.