Topic 10 Suppose a closed economy is currently producing below its full potential due to an adverse demand side shock from the goods market. According to the AS-AD model, if the policy makers want to move the economy more rapidly back to full employment output and, at the same time, wants to keep investment stable (or near to) it's initial level, which of the following policy (policies) would achieve the goals? Policy 1 - An increase in transfer payments to households. Policy 2 - A subsidy to business investment. Policy 3 - An increase in open market purchases. Explain and support your answer by ONE AS-AD diagram