Based on the models drawn in question 8 answer questions 9 and 11

b . I- bills 8. Draw an AD-AS model showing a recessionary gap on the model on the left. Draw a Money Market / Liquidity Preference Model on the right. a. Which line would monetary policy shift in the Money Market model? MS b. Draw the shift on Money Market Model and how that would impact AD-AS model. APL LRAS NIR MS MS 2 SRAS Pez Ez x 25, 0 Pe AD 2 E2 AD MD open Market operation ? ye YP FGDP M M2 Q or Discount rate ? yez reserve requirementsy. What is the precise monetary policy tool that would cause the shift you drew in #8? 10. If the Federal Reserve buys $25,000 of bonds from Commercial banks and the reserve Masters requirement was 20%, how much would go into excess reserves? 25,0 0 0 a. What would be the total impact on money supply? as, QQ0 1 1. Go back up to the model on #8 and draw the long run shift on the Money Market Model. a. What happened to NIR in the LR