Imagine you are an Economics Advisor for a Govemment. Suddenly, there is a signicant decrease in wealth and households' consumption decreases a lot. Help your government analyze the situation using the following graph: Price level 0 Y1 Real GDP 1) (10 palms) At the beginning the economy is at point C. How is represented in the graph the decrease in wealth? Which point represents the new short-term equilibrium? What happens to GDP and prices? 2) (I0 points) Start 'om the short-term equilibrium found in question 1. Imagine that neither the Government nor the Central Bank want to intervene. What happens to the economy? Which point represents the long run equilibrium without intervention? What happens to GDP and prices? 3) (I0 points} Start from the short-term equilibrium found in question 1. Imagine now that the Government wants to intervene. What should the government do? What happens to the economy? Which point represents the long run equilibrium with government intervention? What happens to GDP and prices