3. (Total 20 points) Please get the inflation rate graph from FRED using the variableFPCPITOTLZGUSA. Label the graph as Figure 2 and indicate the source just like you did forQuestion 2A. 5 points A. Which of the above-mentioned recessions (excluding the Great Depression) are most clearly associated with an increase in the inflation rate as you see two major spikes in inflation? What was the cause of the increase in the inflation rate in these two cases? Use the AD, SRAS, LRASmodel and show what curve shifted and in what direction. You can draw on paper and paste your picture. 5 points B. Which one of the above recessions (excluding the Great Depression) was caused by a fall inAD? 5 points (Hint: the 2008 Recession). Why did AD shift left? C. Do you see any difference between supply-shock induced recessions and "decrease-in-demand" induced recessions? 5 points

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