1. a,b IS-LM and AD-AS curves

3. [Closed economy long and short run] Use well-labeled IS-LM and AD-AS diagrams to describe both the short-run and long-run effects of the following TWO changes on national income, the interest rate, the price level, consumption, investment, and real money balances. Briefly explain the transition from the SR to the LR in words. Note: Both SR and LR effects are relative to the initial equilibrium. a. An decrease in the money supply (12.5 pts) b. An increase in taxes (12.5 pts) In addition to your diagrams, use the following table for both (a) and (b) to organize your answer by indicating with an arrow whether each variable rises (T), falls (l), or stays constant (). Y