Assume that the Brazilian economy is currently producing below the potential real GDP level of output with a balanced budget. a. Draw a correctly labeled ADAS model with each of the following components: i. Current output and price level, labeled as Y, PL₁, respectively ii. Full-employment output, labeled as YF b. The Brazilian government increases spending on goods and services by $100 billion, which is financed by borrowing. How will the increase in government spending affect each of the following? i. Cyclical unemployment ii. The natural rate of unemployment 2. Assume that the Canadian economy is currently in long-run equilibrium. a. Draw a correctly labeled graph of aggregate demand and aggregate supply; include each of the following: i. The long-run aggregate supply curve ii. The current equilibrium output and price levels, labeled as Y and PL, respectively b. Assume that the Canadian government increases spending on national defense without raising taxes. i. On your graph above, show how the increase in government spending affects aggregate demand. ii. In the space below, explain how this government action will affect the unemployment rate in the short run. c. Assume the economy self-adjusts to a new long-run equilibrium after the increase in government spending. i. How will the short-run aggregate supply curve in the new long-run equilibrium compare with that in the initial long-run equilibrium in the original graph you drew? Explain what happens. 2. Assume that the Canadian economy is currently in long-run equilibrium. a. Draw a correctly labeled graph of aggregate demand and aggregate supply; include each of the following: i. The long-run aggregate supply curve ii. The current equilibrium output and price levels, labeled as Y and PL, respectively b. Assume that the Canadian government increases spending on national defense without raising taxes. i. On your graph above, show how the increase in government spending affects aggregate demand. ii. In the space below, explain how this government action will affect the unemployment rate in the short run. c. Assume the economy self-adjusts to a new long-run equilibrium after the increase in government spending. i. How will the short-run aggregate supply curve in the new long-run equilibrium compare with that in the initial long-run equilibrium in the original graph you drew? Explain what happens.