Question: It's all one question and I don't know how to solve at all 1. a. Draw a correctly labeled Aggregate Supply, Aggregate Demand graph in

It's all one question and I don't know how to solve at all

1. a. Draw a correctly labeled Aggregate Supply, Aggregate Demand graph in a negative output gap using the following labels: SRAS, AD, LRAS, PL1, Y1, and YF. b. If the government wanted to take action and fix the economy what fiscal policy would they use? c. If the recessionary gap was equal to 400 billion dollars and the marginal propensity to consume was .8, how much should the government spend to get the economy back at full employment? d. If the government wanted to use taxes to help fix the problem, how much should they decrease taxes by? e.On the same graph you labeled in part a, graph the effect of the government action taken in part c or d using labels Y2 and PL2. f. If the government decided to not act, what would happen to the graph

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