1. Draw a supply-demand diagram to show the effects of monetary contraction. 2. Assume there is only one good in the economy, corn. The economy has enough labor, capital, and land to produce 1,800 bushels of corn. V is constant. In 2019 , money supply was $3,600 and the price of corn was $8/ bushel. For 2020 , the Fed increases MS by 10%. A. Compute the 2020 values of nominal GDP and P. Compute the inflation rate for 2019-2020. B. Suppose tech. progress causes Y to increase to 1,950 in 2020. Compute the 2019-2020 inflation rate.