Can you assist on 1a through 1g? Including a drawn graph of 1a with point a labeled, 1b and with point b labeled, and 1g with point c labeled? Thanks!

Lesson 10 Concep Test 1. A change in overall consumer confidence will impact the macroeconomy. Here we will model a decrease in consumer confidence using the AD-AS and look at how monetary policy can try and smooth out the business cycle. Our shock in this question will be: consumer confidence decreases, holding all else constant. Let's start with assuming the US was producing at the full- employment level of output (Yp) with an arbitrary price level (P) before the decline in consumer confidence. a. Represent the US economy at this point with an aggregate demand-aggregate supply graph. Label this initial equilibrium as point A. b. Consumer confidence decreases like mentioned above. Assuming this was the only change in the economy, show how this affects the short run equilibrium in your diagram in part a. Label this new point as point B. c. According to your diagram, is this economy in an expansion or a recession? Explain. d. Assume the Federal Reserve decides to take action to try and move the economy back to long-run macroeconomic equilibrium. What are the three ways they would do this using the old tools? e. What are the two ways they would do this using the new tools? f. Would this be expansionary or contractionary monetary policy? g. Show how this policy affects the AD-AS model in part a. Label this new point as point C