Question 4 [4 points}: Assume that two shocks happen simultaneously: a positive expenditure shock (let's say a popular trend is to go for a bigger house) and a positive supply shock {let's say prices on imported inputs decreased dramatically due to a substantial reduction in tariffs}. Use AEIPC Model (carefully labeledll} without time lags (use the AE and PC graphs similarly to the textbook, place PC graph below AE graph). For your analysis, choose as a starting point {marked A) an economy operating at potential GDP (Y=Y*] and at its ination target (it = TIT). Also, show point B where the economy is situated after the shocks but prior to any central bank policy response. There should be A and B on BOTH the upper {AE graph) and lower {PC graph} graphs. If points A and B are the same point, then just mark that point with both A and B. Mark initial curves with the superscript I, like AE] and PC', and every subsequent shift with a higher number, like the second shift would be AE2 and PCE, and the third shift [if necessarily) would be AE3 and PC3 and so on. Describe that situation