Use the gure to answer the following _questions: (short answers, please) A) At which equilibrium point does the economy have a recessionary gap, and what is the value of such a gap in percentage points? B) What government policy should be recommended for this specific macroeconomic problem? C) What does point E1 represent? Use the editor to format your answer Page 3 of 24 Refer to the figure to answer the following questions: A) What does the Bank of Canada need to do to decrease the nominal interest rates to 4.0%? B) Briey explain the monetary instruments used by the Bank of Canada to achieve this monetary policy objective. Use the editor to format your answer Page 4 or 4 QuestioM To respond to this question, write one or two (100-200 words) single-spaced paragraphs. 1. Use the figure to explain the classical economist's self-correcting mechanism in the presence of a recession. produced by a decrease in aggregate demand from AD1 to ADZ. Use the editor to format your