1.Use the model of aggregate demand and aggregate supply to illustrate the effects onthe U.S. economy of a wave of pessismism in the economy. Assume that there is no government intervention. Be sure to tell me the following:

(a)(1 point) Which curve moves?

(b)(1 point) In which direction does it move?

(c)(1 point) What happens to GDP in the short run?

(d)(1 point) What happens to the price level in the short run?

(e)(1 point) What happens to GDP in the long run?

(f)(1 point) What happens to the price level in the long run?