Using the IS-LM model, illustrate and predict the effects of each of the following shocks on income/output and the interest rate. Then, based off of your IS-LM model, illustrate the change in the AS/AD model, both in the SR and the LR. *Note: please place the graphs side-by-side AND explain your graphs for full credit. a. Suppose numerous firms decide to upgrade their machinery and equipment.
b. Millions of people begin to listen to Dave Ramsey and start to purchase goods and services with cash instead of credit cards. Assume they are still purchasing the same amount of goods and services.
c. A direct competitor to Dave Ramsey, Mr. Moneybags, writes a best-seller entitled Retire Rich which convinces the public to increase the percentage of their income devoted to saving.
d. After a rocky start to 2016, suppose the stock market crashes.
e. The government increases purchases and income taxes by equal amounts.

David burdick is the ceo of acme bubblegum, a successful public company. as one of the cofounders of the company, burdick has enjoyed speaking and writing about the success of acme bubblegum for several years. typically, he speaks at conferences or directly to the press, but recently, he has been blogging about his firm anonymously. specifically, he defended a recent advertising campaign that was unpopular among consumers and pointedly attacked one of acme bubblegum’s competitors. burdick deeply enjoys his anonymous blogging and believes that none of his readers actually know that he works for acme bubblegum. should burdick be allowed to praise his company’s performance anonymously online? should he be allowed to attack his competitors without disclosing his relationship with the company? how would you feel if the ceo of a company at which you shopped was secretly writing criticisms of his or her competition? how would you feel if you knew a writer for your favorite blog was actually closely involved in a company that the blog discussed? 1. define the ethical issue? 2. who are the primary stakeholders? 3. what are the possible alternatives? 4. how could you evaluate the ethical implications of the alternative actions (use appropriate decision rules)? 5. what action would you recommend and why?