(Solved): Consider the following graph. Originally, the economy was at point A. An event happened such that e ...

Consider the following graph. Originally, the economy was at point A. An event happened such that economy is now at point B. If the government does not do anything, the economy will go to point $E$ in long run. Use the given information to answer questions $46?47$ Give an example of an event which causes the economy to go from point $A$ to point $B$ in short run, and then to point $E$ in long run. The economy is now at point $\mathrm{B}$, the government conducts a contractionary fiscal policy to bring the economy back to fullemployment output. Which point is the equilibrium after the