A country is currently in a recession. (10 points)

1. Illustrate this economy on a fully-labeled aggregate demand-aggregate supply model. Include aggregate demand, short-run aggregate supply, and long-run aggregate supply.
   1. Label the short-run equilibrium price level PL_E and the short-run equilibrium output Y_E. Label the full-employment level of output Y_F.
2. The government decides to use fiscal policy to correct this economic situation. Assume the difference between the short-run and long-run equilibrium output is worth $36 billion, and the marginal propensity to consume is 0.75. Calculate one specific and effective fiscal policy action the government could take.