Discretionary increases in government purchases

      Question 1: Apply the AD/AS model to discuss whether or not discretionary increases in government purchases influence levels of economic activity in the long run. Question 2: Apply the Phillips curve framework to discuss the implications of the accelerationist hypothesis for the rate of inflation from attempts by government to keep unemployment consistently below its natural rate. GURES or TABLES - including any diagrams, figures or tables in your answer, these MUST NOT be copied from the internet or any other source. Please include your own figures/diagrams, i.e. drawn using a suitable editor or drawn and inserted by you. Figures should be cited in the main text and appropriately explained.