12 (15 points) Answer the following questions using the AS-AD model and support your explanation by ONE diagram for all parts. You should compare your answer to the initial equilibrium. A closed economy experiences a favorable shock in the demand for goods and services. a) What happens to the economy's output, price, real money balance, and unemployment rate in the short run? In the long run? Explain. (10 points) b) Suppose the government finds the short-run change in output undesirable and wants to keep it from changing, what kind of policy should the government adopt? What is the effect of this change in policy on the real money balance? Explain. (5 points)