Previous parts not necessary. The optimism in rms' growth potentials was also reected in the com-bubble and crisis of 2002 when stock market values of technology rms fell suddenly and sharply in October 2002. j) Illustrate the potential effects of a sharp stock market decline in an AD-(horizontal)SRAS- LRAS diagram with sticky prices Label the initial long-run equilibrium with A, the current period's short-run equilibrium with B, and the current period's long-run equilibrium with C . k) In response to the sharp decline, would you advise the Federal Reserve to decrease or increase the federal funds rate (central bank's policy rate)? Briey explain. Consider the data in the appendix at the end regarding the Federal Reserue's monetary policy choices and the federal budget. 1) Given your two monetary policy recommendations above, are they in line with the chosen policies? Brief explain. m) What are the two main reasons for the falling tax revenues? Brief explain