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1. (35 pts.) Covid19 Stimulus Checks. During the Covid-19 health and economic crisis, Congress enacted to send a check to all Americans in order to stimulate the economy. This stimulus package led to a substantial increase in government spending and a a large government deficit. a. (7 pts.) Working with our model developed in Chapter 3 (short-run). carefully explain the im- pactof the stimulus checks on investment and the real interest rate - if at all. Please carefully present your answer with a graph or explain supply and demand responses in the relevant mar- ket(s). b. (7 pts.) Working with our model developed in Chapter 3 (short-run), carefully explain the impact of stimulus checks on real GDP. If not, please carefully explain why not. c. (7 pts.) Given your answers in Part a. and Part b. carefully explain how the stimulus checks are changing each expenditure component of GDP. d. (7 pts.) In 2021. A new Congress is elected. This Congress recognizes that in order to keep the government budget deficit neutral. they have to raise taxes and offset the increase in government spending. Thus, they propose a deficit neutral plan that substantially increases government spending and taxes in order to provide stimulus checks to Americans as a relief from the Covid-19 pandemic. Carefully describe how your answers to Part a, b, and c will change under this scenario - if at all. Please carefully present your answer with a graph or explain supply and demand responses in the relevant market(s). e. (7 pts.) Speculate how the scenario in Part cl might affect real GDP in the future (within the boundaries of our class material). Be as clear and specific as possible