The chart below represents the initial equilibrium of the US aggregate market. Suppose The chart below represents the initial equilibrium of the US aggregate market. Suppose

a US trade partner, Canada, suffers a recession. Describe the short$-$run impact of

Canada's recession on the US economy. If you were a US president, name one fiscal

policy you'd introduce to help mitigate any negative impact of the Canada's recession

on the US economy. Describe and draw what happens to the US economy after your

fiscal policy is enacted & find the long$-$run equilibrium. Assume all shocks are

unanticipated, and other things are constant.

Market of All Goods and Services, US

a US trade partner, Canada, suffers a recession. Describe the short$-$run impact of

Canada's recession on the US economy. If you were a US president, name one fiscal

policy you'd introduce to help mitigate any negative impact of the Canada's recession

on the US economy. Describe and draw what happens to the US economy after your

fiscal policy is enacted & find the long$-$run equilibrium. Assume all shocks are

unanticipated, and other things are constant.

Market of All Goods and Services, US