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Kindly solve the following questions Move the labels below to their corresponding zone. Potential GDP Price Level Government spending to stimulate output is not effective

Kindly solve the following questions

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Move the labels below to their corresponding zone. Potential GDP Price Level Government spending to stimulate output is not effective Aggregate Supply High cyclical unemployment Low cyclical unemployment Neoclassical zone Real GDP Government spending to stimulate output is effective Keynesian zone Previous @ Check Answer ? HintFabriland is currently in the midst of a deep economic recession. The country is dependent on the local textile industry, which has suffered in recent years from increased foreign competition and a mysterious livestock epidemic which wiped out 95% of Fabriland's sheep and cow population. In an effort to help boost the economy and help Fabriland diversify away from textiles, the government decides to increase government spending. How does this affect the model with aggregate demand, aggregate supply, and long-run aggregate supply curves below? How are price and output affected in the AD/AS model? LRAS AD AS O Price increases and output decreases. Price and output both decrease. OOO Price and output both increase. Price decreases and output increases. Price (P) Incorrect. Please shift the graph to show the effects of an increase in government spending. Output (Y)

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