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Please answer the following 5. Suppose an economy is hit by a recession and people's income fall. a) Show graphically using ADAS model how the

Please answer the following

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5. Suppose an economy is hit by a recession and people's income fall. a) Show graphically using ADAS model how the price level and output are affected in the short-run. b) Can the govemment use scal polio: to offset the eects on both price level and output simultaneously, explain? 6. Suppose an economy is hit by natural disaster and its natm'al resources decreases. a) Show graphically using AD-AS model how the price level and output are affected in the shortrun. 13} Can the government use monetag policy to offset the effects on both price level and output simultaneously, explain

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