10.The economy is in shortrun macroeconomic equilibrium at point in the accompanying diagram. Based on the diagram, answer the following questions. Aggregate LRAS price level SRA $1 Y1 YP Real GDP his the economy facing an inflationary or a recessionarygap? B.What policies can the government implement that might bring the economy back to longrun macroeconomic equilibrium? Illustrate with a diagram. C.lfthe government did not intervene to close this gap, would the economy return to longrun macroeconomic equilibrium? Explain and illustrate with a diagram. D.What are the advantages and disadvantages ofthe government implementing policies to close the gap