ECON 104 HOMEWORK #6 (100 factors whole)Half 1: AE downside 60 Factors totalSuppose the preliminary circumstances of the financial system are characterised by the next equations inblack font. We then shock the financial system as proven within the crimson font.1) C = a0 + a1 (Y-T) + a2 (WSM) + a3 (WRE) + a4 (CC) + a5 (r)1) C = a0 + a1 (Y-200) + a2 (10,000) + a3 (15,000) + a4 (120) + a5 (four)1′) C = a0 + a1 (Y-200) + a2 (12,000) + a3 (15,000) + a4 (160) + a5 (four)2) I = b0 + b1AS + b2CF + b3 (r)2) I = b0 + b1 (140) + b2 (1500) + b3 (four)2) I = b0 + b1 (180) + b2 (2000) + b3 (four)three) G = G3) G = 2004) X-M = X-M4) X-M = -2004) X-M = -4005) AE = C + I + G + X-MWhere: a0 = 50, a1 = .60, a2 = .05, a3 = .10, a4 = .5, a5 = -400, b0 = 100, b1 = .5, b2 = .2, b3 = -50a) (20 factors whole 5 factors for expression and 15 factors for proper and utterly labeleddiagram). Given the preliminary circumstances, discover expression for consumption operate andprovide a very labeled diagram. Please present all work.b) (20 factors whole 5 factors for expression and 15 factors for proper and utterly labeleddiagram). Given the preliminary circumstances, discover an expression for the combination expenditurecurve (AE when it comes to Y), clear up for equilibrium output and supply a graph of thisaggregate expenditure curve labeling this preliminary equilibrium as level A. Please add pointA to your consumption operate diagram, being positive to label this level utterly. Pleaseshow all work.c) (10 factors) We now incur shocks as supplied in crimson font. Clear up for a brand new expression ofthe consumption operate and mixture expenditure curve, clear up for the brand new equilibriumoutput and add this new equilibrium level to each of your diagrams (label as level B).Please present all work.d) (10 factors) Are your outcomes in keeping with the brand new financial system? Why or why not? Explainin element.