Assume an economy that is operating above tiJll employment. A. Draw a correctly labeled aggregate demand and aggregate supply graph and show each of the following: I. The longmn aggregate supply curve ll. Current price level and output levels, labeled PLe and Ye lIl. Full employment output, labeled Yf El. Identify one scal policy action that could resolve the problem. C. Using your graph in Part A, show the short-run effects of the action you identied on each of the following: I. Aggregate demand. Explain (use the cause and effect chain you learned in the lesson] Il. lClutput lll. Price level D. Using a oonectly labeled loanable funds graph, show the effect of the policy you identied in Part E! on real interest rates. E. Given the change in the real interest rate in Part D, what is the impact on each of the following? I. Investment ll. Economic growth rate. Explain. Ill. The international value of the dollar. Explain. F. Now assume instead that the government takes no policy action to x the problem identied in part A. I. In the long mm will the shortrun aggregate supply increase, decrease, or remain unchanged? Explain