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Hi, I need help with this macroeconomics question please, thanks ! Question 4 [6 points] In recent years the federal government increased the GST from

Hi, I need help with this macroeconomics question please, thanks !

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Question 4 [6 points] In recent years the federal government increased the GST from 7 percent to 11 percent. 3) Use an AD/AS/Yp diagram to illustrate and explain the effects of this tax change an equilibrium output and ination. ' AS Curve 2 A? .5 15 E b) If the economy was in equilibrium at potential output and the target ination rate before the tax hike, what monetary policy action, it any, would be required to maintain those equilibrium conditions after the tax hikes? The central bank recognizes the effect of the GST hike on the ination, which n the central bank's measure of core ination causing the bank to u Within a year, the effect of the GST hike on ination and the economy is at equilibrium at u

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