Use the ad/as model below to answer the following questions. in each case, assume the economy starts in long- and short-run equilibrium. a. suppose a stock market crash reduces people’s wealth. instructions: drag the appropriate line in the correct direction to show the short-run effect on the ad/as model. this will: increase output and lower the price level. reduce output and lower the price level. reduce output and raise the price level. increase output and raise the price level. b. suppose the government takes no action to the economy. eventually, the price level and output . c. suppose, instead, the government decides to take action to the economy. you can recommend: cutting taxes and/or raising spending. raising taxes and/or cutting spending. cutting taxes and/or cutting spending. raising taxes and/or raising spending. d. if the u. s. government makes the appropriate policy response, what happens to the price level and output in the long run. in the long run, the price level and output .