This is the problem.

Suppose we are analyzing the AD-AS model and the market for money with the theory of liquidity preferences. (20 points) 9. Suppose the economy is in stagnation. Illustrate this short run equilibrium in the AD-AS model (include all curves). Label the equilibrium point as point A. (4 points) In. Suppose policy makers are committed to stabilizing output and unemployment. What is an appropriate monetary policy response that will increase output and reduce unemployment in the Short run? (4 points) c. Use the market for money to graphically show how the policy response from part (b) will affect interest rate in the economy. (4 points)