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Suppose that your economy is in long run equilibrium. The aggregate demand and aggregate supply in the market is represented by the following: LRAS AS2

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Suppose that your economy is in long run equilibrium. The aggregate demand and aggregate supply in the market is represented by the following: LRAS AS2 AD1 AD, What should the government do to close the gap? State whether you think it will be A, B, C, D, or E. In your answer only include the letter. If you think that it is more than one choice, put both. If you think it is AC you can put both letters. A. Increase government spending B. Decrease government spending C. Increase interest Rate D. Decrease Interest Rate E. Nothing

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