Consider the Canadian economy that is in long run equilibrium with output equal to Y*. Canada and the United States have established a new free trade agreement that results in a significant increase in goods and services imported into the United States from Canada. For the Canadian economy, answer the following questions. use diagrams for the question.

what kind of shock occurred aggregate demand or supply? show this in your diagram

Explain the process (self-adjusting process AD & AS without monetary policy) by which the economy will adjust back toward Y* in the long run. show in your diagram