Please help me. This is my final questions.

1.Savings is Destruction?

Let's imagine that people decide for some reason that they want tosavemore.

a. Show what happens in the market for loanable funds and the Solow graph.

b. What happens to consumption and investment in the short run.If nothing else is going on except that people just decided they wanted to save more, what does this probably mean (at least approximately) about aggregate demand in the short run? (Note: I'm not saying they hold more money.You can save without holding more money.) What does it mean about output and unemployment in the short run?

c. What about the long run? Show the result of this in the long run on AS/AD.

2. Animal Spirits

a. Now let's imagine that people wake up one morning, see their shadows, become frightened and decide that they want to hold moremoney.How could we represent this in our model?(I have a specific change in a specific variable in mind.)

b. What probably happens to consumption and investment here? Show the effect of this in the short run on AS/AD graph.What happens to output and unemployment?BTW, what kind of unemployment are we talking about here? (Assume wages are sticky in the short run.)

c. Show the result of this in the long run if wages unstick.What will happen to nominal wages in the long run?

d. Let's say the central bank wants to prevent the effects in part b and c.What should they do?Show the result of this on an AS/AD graph.