2. [8 points] (a) Suppose an economy is hit by a negative aggregate supply shock. Use the labor market and the production function to predict the effects on employment, real wages, unemployment, and real GDP (output). (b) Consider the following quarterly data for Puerto Rico: employment unemployment wage rate output (10005) rate (insured) (hourly) (l980=100) 2016Q4 667 2.62% 13.17 123.2 201701 663 2.70 13.14 122.5 2017Q2 661 2.65 13.17 122.5 2017Q3 662 2.71 13.18 122.3 2017Q4 625 6.02 13.17 99.5 201801 640 4.05 12.88 113.0 2018Q2 641 2.36 12.93 120.4 201893 644 2.25 13.02 121.6 Puerto Rico was hit by hurricane Maria on September 20, 2017 (end of 2017Q3). Are your predictions in part (a) consistent with Puerto Rico's economic experience aer the hurricane