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(20 points) Answer the next 10 questions based on the following information: Starting from the usual full-employment equilibrium in all markets, also referred to as general equilibrium, what would be the short-run and long-run (i.e., ultimate) effects of a reduction in wealth on each of the following economic variables? Draw the relevant graphical framework and for each variable, you should circle one of the following responses: Up, Down, or Same a. IN THE SHORT-RUN: Real GDP (Y) Up, Down, or Same b. The real interest rate (r) Up, Down, or Same Investment (I) Up, Down, or Same d. Consumption (C) Up, Down, or Same e. The price level (P) Up, Down, or Same c. IN THE LONG-RUN (i.e, ultimately, compared to the starting values before wealth]): f. Real GDP (Y) Up, Down, or Same g. The real interest rate (r) Up, Down, or Same h. Investment (I) Up, Down, or Same i Consumption (C) Up, Down, or Same j The price level (P) Up, Down, or Same ei bos.. (20 points) Answer the next 10 questions based on the following information: Starting from the usual full-employment equilibrium in all markets, also referred to as general equilibrium, what would be the short-run and long-run (i.e., ultimate) effects of a reduction in wealth on each of the following economic variables? Draw the relevant graphical framework and for each variable, you should circle one of the following responses: Up, Down, or Same a. IN THE SHORT-RUN: Real GDP (Y) Up, Down, or Same b. The real interest rate (r) Up, Down, or Same Investment (I) Up, Down, or Same d. Consumption (C) Up, Down, or Same e. The price level (P) Up, Down, or Same c. IN THE LONG-RUN (i.e, ultimately, compared to the starting values before wealth]): f. Real GDP (Y) Up, Down, or Same g. The real interest rate (r) Up, Down, or Same h. Investment (I) Up, Down, or Same i Consumption (C) Up, Down, or Same j The price level (P) Up, Down, or Same ei bos

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