The U.S. economy is experiencing a lingering recession with a rising unemployment rate that will continue to rise without government intervention. a. (1 pt) Draw a correctly labeled aggregate demand and aggregate supply graph for yourself - now describe the location of the economy (the location of the AD curve) in relationship to the level of GDP at full employment. b. (1 pt) Describe one scal policy that would lessen the recession, but still not to the point of full employment. c. (2 pts) If this policy is implemented what happens on your graph to i. Real GDP ii. Price Level d. (2 pts) Assume that the current Real GDP falls short of full employment by $500 billion and the marginal propensity to consume is 0.8 i. Calculate the minimum increase in government spending that could bring about full employment ii. Now assume that instead of increasing government expenditures, the federal government decides to reduce personal income taxes. Will the reduction in personal income taxes required to achieve full employment be larger or smaller than the amount you calculated in (i) why