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2. Political turbulences and the pandemic significantly affected Singapore's consumer confidence in 2020 and 2021. Now, that the pandemic is under control in Singapore, the

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2. Political turbulences and the pandemic significantly affected Singapore's consumer confidence in 2020 and 2021. Now, that the pandemic is under control in Singapore, the marginal propensity to consume has increased from 0.5 to 0.7 (there has been an increase in (). a) Use the IS function model (equation) and the graph to show the initial equilibrium and how the output is affected when there is a change in ac. b) Is the output gap increasing, decreasing, or staying constant? (show it in the graph and explain)

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