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I was wondering what impact #2 would have on a AD/AS graph ? 1. Correctly draw and label a ADIAS model {include both SRAS and

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I was wondering what impact #2 would have on a AD/AS graph ?

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1. Correctly draw and label a ADIAS model {include both SRAS and LRAS) showing an economy in equilibrium. Remember to label the axis'. 2. Now assume, in an effort to increase long-tenn growth, the United States Government subsidies businesses that purchase capital equipment. Step by step, explain how these policies will lead to long-tenn growth

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