Part 2. (70 points) Question 1. a) b) d) Draw an ADAS model diagram (with short-run and long-run aggregate supply curves). Label the long-run equilibrium as point (1) on your diagram, label all axes and curves, provide equations for the curves. 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. 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-c) using the Solow model. Draw a (large enough) Solow model diagram for your model economy that is described in part (a) above. Label the steady state and explain why you chose this point as the steady state. Label per person output, investment, consumption, capital stock, and depreciation levels. Finally, write formulas for each function you plotted. On your Solow diagram, show the effect of the social distancing measures from part (b). Label new per person output, investment, capital stock, and depreciation values as y;, i2, kg, and 5kg, correspondingly. Explain your answer. On your Solow diagram, show the effect of the central bank's intervention from part (c). Label new per person output, investment, capital stock, and depreciation values as y3, i3, kg, and 5K3, correspondingly. Explain your