Use the classical model with misperceptions to answer the following questions. A) Draw the classical AS-AD model with mi

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Use the classical model with misperceptions to answer thefollowing questions.
A) Draw the classical AS-AD model with misperceptions. Labeleach curve, axis, and initial general equilibrium point. (5pts)
B) In 1848, gold was discovered in the Sacramento Valley inNorthern California, creating a massive gold rush. The US was onthe gold standard at the time, so this discovery was effectively alarge, unanticipated increase in the aggregate money supply. On thegraph above, show how output, interest rates and prices respondedin the short-run and the long-run to the suddendiscovery of gold. (10pts)
C) Assume that there was a central bank in the US during thegold rush. If this hypothetical central bank wanted to stabilizeprices and output following the discovery of gold, what could ithave done (i.e. buy/sold bonds, change the minimum reserverequirement, do nothing)? Explain your answer. (10pts)