Use the AS/AD framework with financial frictions to show how the economy responds to a positive shock to the interest ra

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Use the AS/AD framework with financial frictions to show how the
economy responds to a positive
shock to the interest rate spread (that is, a bad financial shock).
Show how the economy adjusts while the
shock lasts and how it adjusts after the shock disappears (that is,
when 𝑓𝑓̅ is larger than zero, and when 𝑓𝑓̅
returns to zero). Explain how the Fed should adjust its monetary
policy in response to a financial shock.
(For now, assume the nominal interest rate is always greater than
zero.)