Consider the following variant of the IS-LM-PC model with an upward-sloping LM-curve: Yt = C(Yt Tt) + I(Yt, it) + Gt (IS) Mt Pt = Ytl(it) (LM) t t1 = ( L )(Yt Yn) (PC) Where L denotes the labor force, l(i) is the liquidity preference function, i is the nominal interest rate, M P is the real money supply, Y is the level of output, and Yn is potential output. a. Draw the IS-LM-PC model in an initial equilibrium with t t1 = 0 and Y = Yn. b. Suppose there is a sudden negative shock to consumer confidence. What is the impact of the decline in consumer confidence on output, inflation, and the interest rate in the short-run? Graph it