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.

John and daphne are saving for their daughter ellen's college education. ellen just turned 10 at (t = 0), and she will be entering college 8 years from now (at t = 8). college tuition and expenses at state u. are currently $14,500 a year, but they are expected to increase at a rate of 3.5% a year. ellen should graduate in 4 years--if she takes longer or wants to go to graduate school, she will be on her own. tuition and other costs will be due at the beginning of each school year (at t = 8, 9, 10, and 11).so far, john and daphne have accumulated $15,000 in their college savings account (at t = 0). their long-run financial plan is to add an additional $5,000 in each of the next 4 years (at t = 1, 2, 3, and 4). then they plan to make 3 equal annual contributions in each of the following years, t = 5, 6, and 7. they expect their investment account to earn 9%. how large must the annual payments at t = 5, 6, and 7 be to cover ellen's anticipated college costs? a. $1,965.21b. $2,068.64c. $2,177.51d. $2,292.12e. $2,412.76