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Use the following diagrams to analysis the following scenarios. State whether you think it will be graph A, B, C, or D. In your answers

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Use the following diagrams to analysis the following scenarios. State whether you think it will be graph A, B, C, or D. 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 only includes the long run analysis, starting from the short run gap. A B C D LRAS AS LRAS AS2 LBAS LRAS ASz AS1 AS1 AD1 AD1 Scenario: The Bank of Canada sees that there is an output gap in the economy, which has been cause by a negative supply shock, which graph represents what will occur in the long run to close the gap

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