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Use the following diagrams to analysis the following scenarios. State whether you think it will be graph A, B, C, D, E, F, G or
Use the following diagrams to analysis the following scenarios. State whether you think it will be graph A, B, C, D, E, F, G or H. In your answers only include the letter, so if you think it is graph a, just put A as your answer. . Assume that the economy was in long run equilibrium before the scenario occurred. Be sure that your answer includes both the short run and long run analysis. D E H AS2 $ LRAS ASI ASI AS1 AS2 AD2 AD1 Figure (AD/AS) in the short run. Scenario: The government of Canada has increased the amount of tax free savings that Canadians can have in their TFSAS. After this tax season, banks will have much more money held in people savings accounts. Canadian firm owners are excited about this change. Suppose that the Canadian government decides to initiate fiscal policy. What will happen to the Canadian economy in the long run after the government policy is initiated? Choose the graph that shows both the short run and long run change in the economy
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