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asap please Suppose the small country of Sunny Land depends heavily on North American tourists during the winter season. Suppose the North American economy was

asap please

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Suppose the small country of Sunny Land depends heavily on North American tourists during the winter season. Suppose the North American economy was booming because the stock market was doing well. You are to advise the government of Sunny Land how this boom in North America will affect its economy. Part A (3 points) Use the AD-AS model to illustrate the initial state of the Sunny Land economy (the long-run equilibrium). Be sure to show aggregate demand, short-run aggregate supply and the long-run aggregate supply curve. Label this initial equilibrium point A. Please label each graph and axes to receive full points. Part B (5 points) Modify your diagram in part a to show the effect of the economic boom in North America on the Sunny Land economy in the short run. Label this new equilibrium point B. What happens to the price level and output as the Sunny Land economy moves from A to B? What happens to unemployment? Part C (3 points) Explain to the government and also show this by further modifying your graph, what will happen in the long-run if the government or the central bank does not intervene. Label this new equilibrium point C. Make sure to explain what happens to the price level and output as the economy moves from point B to C

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