3) 1+3 points - Diagram(s) and explanation required to get full credit. a. Assume the economy faces a huge demand shock that lands it in the upward sloping segment of Aggregate Demand curve. Depict this situation on the diagram for AD-AS model. b. How can policy makers respond to this shock to help alleviate the recessionary output gap. Give a specific example and show the effect of your recommended policy on your diagram