Instead of waiting for the economy to adjust by itself out of the pandemic disruptions, the government of Canada and the Bank of Canada did, in fact, interfere swiftly in the economy. In 2020, the government introduced different types of income transfers and other extraordinary measures to help Canadians who struggled or lost their ability to earn income. Bank of Canada lowered the bank rate to 0.5% in April 2020 and maintained it at this very low level until March 2022. I. In terms of the AD-AS model, what was the intention behind these changes in government and central bank measures? How are these policies called? (2 marks) J. Which curve(s) is (are) affected by this type of policies and how? (2 marks) K. Assume that the policies listed above are successful in shifting the relevant curve(s) until the economy returns to long-run equilibrium. Starting with the economy still at point B on your previous diagram, show the effect of these policies on your diagram (that is, shift the relevant curve(s) until the economy reaches a long-run equilibrium). Label the new long-run equilibrium as point D. (2 marks) L. Is point D the same as the long-run equilibrium point C found above? If not, whats is different between them? (2 marks) M. Critics of the government and central bank intervention blame them for the recent spike in inflation. Supporters of policy intervention claim that these policies were necessary to avoid a long and painful recession and possibly deflation. Which of these groups do you agree with and why?