Analyze, using the IS-LM model, the macroeconomic effects of an increase in savings in the short term and its implications for long-term growth. Specifically, suppose that households (consumers) lose confidence and start saving more for any level of disposable income. Please answer the following question (using graphs where possible): Does the attempt to save more necessarily lead to increased savings or will it lead to a decrease in savings and why?

Please help me with this question wih explanantion.

please answer the question in the attached picture with work shown, thanks! #5

The diagram below shows alternate paths for two hypothetical economies, each starting with GDP of $1 billion. Assume that Area 1 is equal to Area 2. Real Consumption FIGURE 25-1 Area 1 Year X Aren 2 Time Year Y Economy B 2% growth Economy A 1% growth h Refer to Figure 25-1. Suppose Economy A jumps to the path of Economy B at Year 0 by increasing the share of GDP that is saved. In that case, which of the following statements about Economy A is true? O a. By jumping to a new growth path at Year 0, Economy A has increased the share of national income that is consumed. O b. By Year Y, the increase in consumption made possible by the economy's higher growth rate approximately equals the consumption sacrificed in earlier years. Oc By Year X, Economy A is saving and investing the same share of its national income as it would have been had it stayed on its original path Od. Economy A will not be able to regain the losses in consumption it incurs by jumping to the path of Economy B Oe. By Year…

Please answer fast