The adjacent graph shows the initial labor supply curve (LS1), initial labor demand curve (LD1), and the initial labor market equilibrium in an economy. Suppose the economy now has a technological breakthrough. 1. Using the multipoint curve drawing tool, show the short run effects of this shock on this economy without considering the effects of multipliers and use 'BM' (before multipliers) as the subscript while labelling the new curve. 2. Using the multipoint curve drawing tool, show the short run effects of this shock on this economy by considering the effects of multipliers and use 'AM' (after multipliers) as the subscript while labelling the new curve. Assume that the shock is not strong enough to generate full employment. Carefully follow the instructions above and only draw the required objects. Use the fewest points possible in achieving the desired outcome. Which of the following are consequences of an economic expansion when the labor market is already close to full employment? (Check all that apply.) I: A. To increase their popularity during elections, policymakers are encouraged to control economic booms in order to limit the potential negative effects. I: B. The boom is likely to generate a great deal of wage ination and very little employment and output growth. I: C. The optimism or other factors that originally triggered the boom may get reversed at some point and create negative multiplier effects. I: D. The Phillips curve tradeoff is favorable when an economy is approaching full employment. Wage Labor market equilibrium Ls1 E1 LD1 Quantity of labor