Note: Please label your graphs and axes on graph problems and please show your work and calculations and your steps on the math problems.

5. An article in CNN dated June 5, 2008 showed that "Americans saw their net worth decline by $1.7 trillion in the first quarter of 2008-the biggest drop since 2008-as declines in home values and the stock prices in the stock market ravaged their holdings and earnings." Based on this event, how has consumption expenditure actually responded in the first quarter of 2008 and what happened to the total expenditure curve? Did the TE curve shift upward or downward? Do inventory levels unexpectedly increase or decrease when the TE curve shifts upward or downward based on this event? Will business increase or decrease the quantity of goods and services they produce to reach the new equilibrium Real GDP level? Will total expenditures, total production and equilibrium GDP all rise or fall according to this article? Were there layoffs or did companies produce more goods and services in the United States? Using graph paper or Microsoft excel, please use a graph and words to explain. When graphing, please make sure you graph and label the total production curve (TP=GDP), the old total expenditure curve, TE1, and the new total expenditure curve, TE 2. Also, label TE and TP(Trillions of dollars) and put it on the y-axis and label and put Real GDP(Trillions of Dollars $) on the x-axis. Finally, label and put the old equilibrium Real GDP (Q1) and the new equilibrium Real GDP level (Q2) on the x-axis. Make sure the initial total expenditure curve, TE1 and the new total expenditure curve, TE2, intersect with the total production curve, TP, at the initial equilibrium Real GDP level, Q1 and the new equilibrium Real GDP, Q2.