Suppose the economy is in long-run equilibrium (real GDP = the natural level of output, YN). a) Draw a diagram to illustrate the state of the economy. Be sure to show aggregate demand, short run aggregate supply, and long run aggregate supply. b) Now suppose that a stock market crash causes aggregate demand to fall. Use your diagram to show what happens to output and the price level in the short run. What happens to the unemployment rate? c) Use the sticky-wage theory of aggregate supply to explain what will happen to output and the price level in the long run. What role does the expected price level play in this adjustment? Be sure to illustrate your analysis in a graph.