Suppose that, because of a decline in investment expenditures in a hypothetical economy in the year 2001, real GDP follows the path ABCDE in the figure below. If a discretionary policy were used that was timely and not too little or too large, show how the path in the figure would change. Use the IA-AD curve analysis to show the consequence of this discretionary fiscal policy. 
Definitions:
Average Costs
The total costs of production divided by the number of units produced, often used to assess cost efficiency.
Lease Cost
The expense associated with renting an asset, such as equipment or property, for a specified period.
Sales Volume
Sales volume refers to the total number of units of a product or service sold by a company during a specified period, often used to measure business activity level.
Total Lease Cost
The cumulative amount of money paid over the lifetime of a lease agreement, including monthly payments, fees, and other charges.
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