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/15 Points) Fiscal Policy and Graphing Practice (Topics 3.6-3.8) Explain the difference between discretionary and non-discretionary fiscal policy. Explain the difference between expansionary and contractionary

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/15 Points) Fiscal Policy and Graphing Practice (Topics 3.6-3.8) Explain the difference between discretionary and non-discretionary fiscal policy. Explain the difference between expansionary and contractionary fiscal policy. Give examples of each. ( b. Draw a set of graphs using aggregate demand, aggregate supply, and LRAS to show both a recessionary gap and an inflationary gap. Explain how fiscal policy can be used to close each gap. What shifts on the graph? ( c. Draw another set of graphs showing recessionary gap and an inflationary gap. Explain what happens to both graphs in the long-run without government intervention. What shifts on the graph? ( in

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