Draw a basic aggregate demand and aggregate supply graph (with LRAS con- stant) that shows the economy in long-run equilibrium. (Note: use separate graphs for showing the step-by-step effects on real GDP, unemployment rate, ination etc. of each individual shocks below.) a) Suppose that households and businesses increase autonomous expenditures, driving output well above potential. Describe, in detail, how monetary policy might react to minimize the increase in ination (4 points) b) Assume that there is an unexpected increase in the price of oil. Show the resulting short-run equilibrium in your graph. Explain how the economy adjust back to long-run equilibrium for the following two scenarios: i. when the oil price change is temporary (3 points) ii. when the oil price change is permanent (3 points)