Question 7 (5 points) LRAS, Aggregate Price Level AD, SRAS, P1 F Y1 Yp Real GDP on Given the graph above: An economy is in long-run macroeconomic equilibrium when anticipating the possibility of war, the government increases its purchases of military equipment, shocking the economy. Given this shock: a) Which curve by name(if any)in this graphic will shift? b) In which direction will that curve, if any, shift (out or in)? b) What kind of gap-inflationary or recessionary-will the economy face after the shock? d) What type of fiscal policies would help move the economy back to potential output? e) How would your recommended fiscal policy shift the aggregate demand curve