2 General Equilibrium Model: Government Expenditure Shock Let us consider the following economic shock. By the distribution of stimulus check to residence during pandemic, the autonomous government expenditure 5 increased by G. Use the 5diagram GE model to analyse the impact of this shock. E}? convention, the initial position of variables are labeled 1with subscript 1; the short-run equilibrium are labeled with subscript 2 and long-Tun equilibrium are labeled 1with subscript 3. 10. (1 point) Suppose after the shock, the economy temporarily stays at the short-run equilibrium, then the output gap Y2 - Y, is 0. A > B C C = D incomparable with 11. (1 point) The inflation gap #2 - 71 is Q. A > B B C C = D incomparable with 13. (1 point) The inflation gap as - *1 is 0. A > B C C = D incomparable with 14. (1 point) Suppose the Fed takes price stability as their primary mandates, then which of the following should be done to address the shock. A monetary easing B monetary tightening C raise the F D lower the F