(Solved): 5. Consider an economy described by the IS-LM diagram in Figure 6 . Here \( \ ...

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5. Consider an economy described by the IS-LM diagram in Figure 6 . Here \( \left(Y_{\mathrm{e}}, r_{\mathrm{e}}\right) \) is an equilibrium output-interest rate pair. Consider now the situation at \( \left(Y_{\mathrm{e}}, r_{1}\right) \). A. Is there an excess supply or an excess demand for money at \( \left(Y_{e}, r_{1}\right) \) ? B. Is there an excess supply or an excess demand for output at \( \left(Y_{e}, r_{1}\right) \) ? C. Are your answers to (A) and (B) consistent with Walras' law?