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please help In text of Short Run Ag rate Buy lied also decreat CPI and the Real GDP in the shop 2. Fiscal policy. Current

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In text of Short Run Ag rate Buy lied also decreat CPI and the Real GDP in the shop 2. Fiscal policy. Current macroeconomic situation in county X is shown on graph below. Help this economy move back to full employment at 10 trillion real GDP by answering the following questions. 140 Price level LHAS SHAS 130 120 100 8 8 AU 1 1 12 Real GOP I Is country X facing a) Recessionary gap, or b) Inflationary gap? (2 point) Il. Country X should use, a) Expansionary, or b) Contractionary Fiscal Policy. (2 points) Ill. How is a contractionary fiscal policy implemented? (3 points) IV. Will a successful implementation of a contractionary fiscal policy result in a shift in AD or SRAS? Explain why. (4 points)

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