Consider the impulse response functions generated using the Altiga, Christiano, Eichenbaum, and Lindé (2011) DSGE model in response to a monetary shock. The endogenous variables are the output gap (ytilde_t), consumption (c_tpred), inflation (inflationq), and the interest rate (interest). Briefly discuss the results of the simulations, using macroeconomic theory.
Figure 15.10: Impulse Response Function to a Change in Money Supply 
Definitions:
Cnidarian
Radially symmetrical invertebrate with two tissue layers; uses tentacles with stinging cells to capture food.
Cnidocyte
Stinging cell unique to cnidarians.
Polyps
Abnormal growths of tissue projecting from a mucous membrane, commonly found in organs such as the nose or intestines.
Closed Circulatory System
A circulatory system where the blood moves through the body in closed vessels, ensuring efficient transport of nutrients and oxygen to cells and removal of waste products.
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