Econ $2002-$ Bonus Assignment $($gain up to an extra $8\%!!)$ The fictional country of Hyrule has recently experienced a slowdown in economic growth. The country$$s monetary authority lowered interest rates in recent months to stimulate investment. However, inflation is still around $7\%,$ which is higher than the authorities want it to be$.$Meanwhile, the decision makers in the country$$s treasury want to spend. They$$d like to build new roads, a rapid transit system, and teleportation infrastructure as they expect portal technology to be available within five years. They$$d also like to put a tax increase on wealthy landowners to fund their spending and potentially curb inflation. As a citizen, you are concerned about the spending and the inflationary pressures it may create. Question a$.$ Explain how the interest rate reduction and the increased infrastructure spending might affect the country$$s short$-$run output, interest rates, and inflation. Support your answer with diagrams and explain any shifts in the IS$,$ LM$,$ AD$,$ and AS curves. b$.$ How might the tax on wealthy individuals affect the economy in the short run and the long run? Explain your answer only in reference to the economic models in this course. Would you recommend implementing this tax? c$.$ Considering the current policy measures and concerns, outline a policy recommendation to support economic growth without worsening inflation. Discuss possible trade$-$offs involved and suggest how the authorities might address them. Instructions $$ Your answers should be short and efficient. $$ Bullet points are allowed for your answer format $($in fact, this is preferred$).$ At least two labelled diagrams should be included in your answer. $$ Word documents are allowed for submission, or scans if answers are handwritten.