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Suppose an economy is experiencing a contractionary gap. In response, the central bank eases monetary policy. With the aid of an AD-SRAS-LRAS diagram, and in

Suppose an economy is experiencing a contractionary gap. In response, the central bank eases monetary policy. With the aid of an AD-SRAS-LRAS diagram, and in words, describe the transition of the economy from the short run to the long run following the implementation of this policy.

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