2. Use the diagram to answer the following questions. a. At which point might expansionary government policy help stabilize the economy? b. At which point might contractionary government policy help stabilize the economy? SRAS LRAS SRAS Price Level AD AD Real GDP 3. Use the diagram from problem 2 and indicate a. which movement would correspond to an unanticipated expansionary goverment policy in the short ni. b. which movement would correspond to an unantic pared contractionary government pobly in the short maz. which movement would correspond to a completely anticipated expansionary government policy, under rational expectations. d which movement would correspond to a complete; anteipad contractionary government policy in the hort run e. what would happen if an expansionary government policy occurred, but it's inflationan effects were Smaller than they were expected to be.