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One thing we have learned from history is that just because the economy is in equilibrium does not mean we are at a level of

One thing we have learned from history is that just because the economy is in equilibrium does not mean we are at a level of GDP high enough to create full employment. Let's call the desired level of GDP "full-employment Y", denoted YN. Assume that YeN. The difference between Ye and YN is called a recessionary gap. Show this gap on a graph. Now, what would have to happen through fiscal policy for the economy to achieve YN? Describe what is happening and draw the graph.

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