Question: QUESTION 3 2 points Save Answer Graph: Add to your graph a new line depicting a sudden decrease in Aggregate Demand, e.g. because ofa government

QUESTION 3 2 points Save Answer Graph: Add to your graph a new line depicting a sudden decrease in Aggregate Demand, e.g. because ofa government imposed lockdown. ShortAnswer: Describe the overall impact of both shocks upon inflation, interest rates, FX rate if capital is very mobile (no need to show BP curve if you understand the intuition), GDP gap and the unemployment rate. Using short hand (variables & up/ down arrows) is perfectly ne :-) Hint: Your answer will depend upon your graph. It is OK to have different graphs and thus different answers compared to your fellow students.

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