ssignment Overview - Write a 400-word essay that analyzes the macroeconomic impact of the September 11th terrorist attack on the US economy and the policy responses by Congress and the Federal Reserve to those shocks by using the IS-LM model. Assignment Objective - Using the IS-LM model, determine the macroeconomic impacts on interest rates and output from a macroeconomic shock using the September 11 terrorist attacks as an example. Background - Assume the economy was in short and long-run equilibrium before the terrorist attacks. Thus, ignore the fact that the stock market dotcom bubble busted a few months before September 11th. Analyze the short-term macroeconomic impact on the economy of this shock and discuss alternative policy responses, identifying the resulting new short-term equilibrium of the economy in the IS-LM diagram. The price level is assumed fixed as we are focusing on the short-run impact. Resources - Mankiw N. G. (2019), Macroeconomics (10th edition): Case Study: The U.S. Recession of 2001 (In Textbook Chapter 12, end of Section 1). Requirements 1. Briefly describe the circumstances surrounding the macroeconomic shock. Your analysis should identify which component of the economy (C, I, or Md) was directly affected by the attacks. To exceed expectations