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2) (7 points) Assume an economy is operating at long run equilibrium. A) Draw an aggregate supply and demand curve that illustrates the economy mentioned

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2) (7 points) Assume an economy is operating at long run equilibrium. A) Draw an aggregate supply and demand curve that illustrates the economy mentioned above. Label equilibrium output Q1 and Price Level Pl. B) Assume businesses across America are paying higher costs for employee health insurance. Show what happens to the economy in the short run. Be sure to label any new curves, output, and price levels. (i) Identify which curved shifted and Whether it increased or decreased. (ii) Identify whether a recessionary or inationary gap has occurred. (iii) Identify if any demand pull ination or cost push ination has occurred. C) 0n the same graph, show and explain how the graph will eventually \"self correct\" back to long run equilibrium

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