Country X is initially producing at its potential level so that real GDP equals Y^*, the full-employment output. It is a closed economy without international trade.(There is no need to draw graph, please explaintheshift ofcurve(s) in words. )

a)If the government uses an expansionary fiscal policy by raising government purchase, what are the effects on price and real output?

b)Is there crowding out in this economy? Explain.

c)Answer parts (a) and (b) again if the economy is initially in recession.