Problems 1. Use the AS-AD model to derive the effects of a reduction in MT. 2. Use the ASAD model to derive the effects of a drop in animal spirits SP. 3. Use the AS-AD model to derive the effects of an increase in unemployment benets 2. 4. Use the ASAD model to derive the effects of an increase in the capital stock K. General guidelines 1. Show the effects on P, Y, r, C, I, N, and W/P. 2. Show the effects for the short run and the long run, and indicate which response is larger, whenever possible. 3. Show all steps using diagrams and formulas. No credit will be given for incomplete arguments