Part 2. ('10 points) Question 1. a) Draw an ADAS model diagram (with short-run and long-run aggregate supply curves). Label the long-rim equilibrium as point (1) on your diagram, label all axes and curves, provide equations for the curves. b) Assume a new deadly virus plagues the model economy and, to ensure public health safety, the government imposes social distancing measures. Label the equilibrium that is reached after citizens of your model economy receive stay-at-home orders as point (2). Explain your answer. c) The central bank of the model economy starts a quantitative easing program. Describe how the program is different from open-market operations. Label the new equilibrium as point (3) and explain the economic intuition for your answer. In what follows, you will be asked to illustrate the same events (a-e) using the Solow model