$-$ Part $1$: As you answer each part, please show how you arrived at that answer and explain your answers in detail to earn credit for discussion.

a$)$ Start from a long$-$run equilibrium, the price level at the long$-$run equilibrium is $\backslash (\backslash$$ $110\backslash ),$ and the potential output is $\backslash (\backslash$$ $20\backslash )$ trillion. Create the SRAS $($short$-$run aggregate supply$),$ AD$1($aggregate demand$),$ and LRAS $($long$-$run aggregate supply graph$).$ No other numbers are necessary besides the price level and the potential output provided to you. The axes must be labeled correctly and according to the instructions. $(4$ points$).$

b$)$ Suppose the economy faces a recessionary gap; the real output during the recession drops to $\backslash (\backslash$$ $19\backslash )$ trillion, and the price level drops to $\backslash (\backslash$$ $105\backslash ).$ Show the recessionary gap by shifting the correct graph in a well$-$labeled diagram. Please focus on the short$-$run equilibrium in the recession $($not the long run$).$ Label the short$-$run equilibrium point B$.(4$ points$).$

c$)$ Can the government close the recessionary gap with a discretionary fiscal policy? Explain in detail $-$ is it a contractionary or an expansionary policy? $(2$ points$)$

d$)$ Suppose the quantity demanded at the initial aggregate demand graph AD$1$ is $\backslash (\backslash$$ $20\mathrm{.}5\backslash )$ trillion at the price level of $\backslash (\backslash$$ $105\backslash ).$ Label the point on the AD$1$ graph that corresponds to Price $\backslash (=\backslash$$ $105\backslash ),$ point C $.$ If the marginal propensity to consume in this economy is $0\mathrm{.}5,$ then how much should the government change its expenditure to close the recessionary gap? Ensure you show the formula and calculations clearly on a hand$-$written piece of paper and upload pictures of your calculations; otherwise, you will not earn any points. $(6$ points$)$

$-$ All your graphs must be hand$-$drawn on a piece of paper; you will upload the pictures; otherwise, you will earn zero points. Please do not use any