Correct answers only, if you don't know plz skip have been getting wrong answers.

Use the diagram below to answer the following questions: Assume the economy begins at ASo = ADo Economy of Ashenvale 2.400- Y* AS 2,000 AS0 Ed 1,300 Price Level (P) 1.200- ADo 800- 400- :5,000 17,000 2,000 4,000 6,000 8,000 10,000 Real GDP (Y) The economy is currently experiencing type of "gap"? (1 Mark) b) What is the size of the "gap"? (1 Mark) C) What would you expect to happen to unemployment if equilibrium is at Es? (1 Mark) d) What would happen to wages at En? (1 Mark) Due to the changes is wages, how would this impact producers/suppliers?(2 Marks) and how does this impact the diagram above? (2 Marks) f) If government did not want to wait for a free market solution to return to potential GDP, what is the name for the policy that could be taken by the government?(1 Mark) g) How would this government policy impact the diagram above? (2 Marks)Suppose the following normal form game is played three times. Players observe the actions chosen in the first period prior to the second period and the action chosen in the second period prior to the third period. Each player's total payoff is the sum of his/her payoff in the three periods. Let X > 0 A B C A 10 , 10 0 , 12 0, 0 B 12 , 0 X , X 0, 0 0 , 0 0, 0 1, 1 Consider the following strategy: Play A in period 1; play A in period 2 if the action profile in period I is (A,A), otherwise play C; play B in period 3 if the action profile is (A, A) both in period I and in period 2, otherwise play C. Which of the following statements is true? OA. Both players following the strategy is a SPE for all values of X > 0 OB. Both players following the strategy is a SPE for all values of x 2 3 OC. Both players following the strategy is a SPE for all values of X $ 3 OD. Both players following the strategy is a SPE for all values of x E [1,3]Page