Question: Show graphically and explain why an active stabilization policy might work if the economy is in a recession due to a demand shock (a shock

Show graphically and explain why an active stabilization policy might work if the economy is in a recession due to a demand shock (a shock that affects C, I, G or NX).Show graphically and explain why an active stabilization policy might not be a good idea if the economy is in a recession due to a negative supply shock (a shock that increases costs for firms).

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