1. Explain how such change in condence (or expectations) would aect the following curves/functions and variables at any given initial levels of income (Y ) ; price level 0 (P0); ination expectations gpe ; exchange rates (both real er0 and nominal ER0), 0 government purchases (G0) ; and money supply (M0s) : (a) For each of the curves below, state the direction in which it would shift left- ward? rightward? upward? downward? ambiguous? no shift? in direct response to the pandemic shock, and then provide an explanation. i. Consumption demand (i.e., the C-curve) ii. Investment demand (i.e., the I-curve) iii. Net-exports demand (i.e., the NX-curve) iv. Supply of loanable funds (i.e., the Ls-curve) v. Demand for loanable funds (i.e., the Ld-curve) vi. Supply of real balances (i.e., the ms-curve) vii. Demand for real balances (i.e., the md-curve) (b) For each of the variables below, state the direction in which it would change increase? decrease? ambiguous? no change? in direct response to the pandemic shock, and then provide an explanation. i. Real interest rate (r) determined in the loanable-funds market ii. Nominal interest rate (R) determined in the money market iii. Quantity of loanable funds (L)