1. [13 points in total] Draw a basic aggregate demand and supply graph (with LRAS constant) that shows the economy is in long-run equilibrium, label it as A. a) b) Assume that the government repairs aging roads and bridges. Show the resulting short-run equilibrium on your graph. In this short-run equilibrium, call it B, is the unemployment rate likely to be higher or lower than it was before the govemment's repairs? Briey explain.g3 points) Continue with part a) Explain how the economy adjusts back to long-run equilibrium if the government intervene the market. What policy will the government use? When the economy has adjusted back to long-run equilibrium, how have the value of each of the following changed relative to what they were before the govemment's repairs: (4 points) i. Real GDP ii. The price iii. The unemployment ra=te Explain why might policymakers choose not to intervene the market and let the economy adjust ---- or self-correct ---- on its own? (3 points) d) Please explain why the aggregate-demand curve slopes downward? (3 points)