For each of the following scenarios, tell a story and predict the effects on the equilibrium level of aggregate output (Y) and the interest rate (r): 

a. During 2009, the Federal Reserve was easing monetary policy in an attempt to boost the economy. That same year, Congress passed the American Recovery and Reinvestment Act which cut taxes and expanded existing tax credits for working families and businesses.
b. On January 1, 2013, the Social Security portion of the payroll tax rose from 4.2 percent to 6.2 percent and the top marginal tax rate increased to 39.6 percent from 35 percent. Assume that the Fed holds Ms fixed.

c. In 2014, the government raised taxes. At the same time, the Fed was pursuing an expansionary monetary policy. 

d. In January 2015, consumer confidence in the United States rose to its highest level since 2007, reflected by a rise in consumption. Assume that the Fed holds the money supply constant.

e. The Fed attempts to increase the money supply to stimulate the economy, but plants are operating at 65 percent of their capacities and businesses are pessimistic about the future.