1. The macroeconomy is currently in an inationary gap. Draw this situation in an AD/AS diagram. Make sure to label all axes and curves and the equilibrium GDP and price level. (1 point) 2. What would you expect to happen to GDP in the long run if neither the Federal Reserve nor the Federal Government did anything in the short run? (1 point) 3. Explain how you would use scal policy in the situation described by the diagram. (1 point) 4. Add curves to your diagram from part 1, clearly indicating what your scal policy intervention from part2 would achieve. {1 point) 5. Explain what type of open market operation (OMO) the Federal Reserve would pursue in the situation described by the diagram. (1 point)