4. Fiscal Policy in the IS -LM model The US stock market experienced an historic boom during the 90's, driven in part by investors optimism about the prospects of new information technologies . This optimism faded at the end of the decade , and average stock prices fell by about 25 percent from August 2000 to August 2001 . i. Using the ISLM adn the AS AD diagrams , explain how a collapse in the stock mar ket affects output and prices in the ISLM model in the short run. ii. Congress passed major tax cuts in 2001 and in 2003 . Use the ISLM and AS AD diagrams below to show how the tax cuts could have helped the recovery