5. For each of following, use an AD–AS diagram to show the short-run and long-run effects on output and inflation. Assume the economy starts in long-run equilibrium. LO 11.6 MEDIUM a)An increase in consumer confidence that leads to higher consumption spending b)A reduction in taxes c)An easing of monetary policy by the Reserve Bank (a downward shift in the policy reaction function) d)A sharp drop in oil prices e)A war that raises government purchases.