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 the spread of democracy around the world increases consumer confidence in the united states. instuctions: drag the appropriate line in the correct direction to show the short-run effect on the ad/as model. this will: 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: . 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 .

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan