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In October 2018 marijuana became legal in Canada, and since then marijuana is legal for adultsto own and use it. As it became legal some

In October 2018 marijuana became legal in Canada, and since then marijuana is legal for adultsto own and use it. As it became legal some Canadians invested in growing marijuana and someretail stores opened to sell this product.

(a) Use ASAD model to discuss the impact of this policy on the short run and long runequilibrium in Canada.

Hint: the policy will mainly impact AD by increasing investments

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