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Force Completion This best can be saved and re Your aruwers are saved automatically Question Completion Statia: QUESTION 1 10 points Suppose the Economy of Olivareslandia is experiencing a recession. a. Draw a correctly labeled AD/AS graph showing the current state of the economy. (4 points) b. Assume that oil prices worldwide have caused evergy prices to increase in Olivareslandia. Show the effects this would have on the economy on the graph you drew for part a. (1 point) c. According to your graph, how does the increase in energy prices affect real output, inflation and unemployment. (2 points) d. The central bank in Olivareslandia decides to use monetary policy to adress the issues in the economy. Use a Money Market Graph to explain what the central bank would do to interest rates in this situation. (3 points) e. Assuming an open economy and based on your answer for part d, what effect would you expect this new monetary policy to have on capital flows to the U.S? How could this affect the U.S. dollar compared to other currencies? (5 points) For the toolbar press ALT-F10 (PC) or ALT+FN+F10 [Music) B I US Paragraph Arial 14px X X 83 51 OWENCS POWERED ENTRY Click Sand and Submit to save and submit. Click Save All Ammo