12. In the early 1980s, the unemployment rate in the United States rose above 10 percent. The United States was in a severe recession. Both fiscal and monetary policies were used to stimulate the economy. Government spending increased by 18.9 percent, while the Federal Reserve cut interest rates by nearly 11 percentage points. How would these policies affect the labor demand curve and the overall labor market? Assuming wages are rigid, use a graph to explain your answer. Be sure to show the pre-recession equilibrium, the situation at the trough of the recession, and the effect of the government policies.