$1.$ Question $1$:

$*$Layer $1$:$*$ Suppose a country heavily relies on petroleum imports for its energy needs. How might fluctuations in global oil prices impact its economy, particularly considering its trade balance and inflation rate?

$*$Layer $2$:$*$ Additionally, discuss potential strategies this country could implement to mitigate the adverse effects of oil price volatility on its economy, including diversification of energy sources and investment in renewable energy technologies.