2. Assume that the economy was operating at full employment in 1972 with a steady inflation rate. In 1973, there was a structural break in productivity growth. For the 10 years prior to 1973, productivity had grown by an average of 2.7% per year. For the 10 years following 1973, productivity grew by only 1.2%. Also in 1973, there was a quintupleng of oil prices as OPEC raised the price of a barrel of crude oil from $2.50 to $12.50. Finally, in 1974, there was a major acceleration in military spending to fight the war in Vietnam. The full inflation adjustment process takes 7 years. a. Based only on this information, use a DAD - SAS model diagram to clearly show the effects of these events on equilibrium output and the inflation rate and during 1973, 1974, 1975 and 1976. Also be sure to clearly identify where the economy and inflation settle when the adjustment process is complete. b. Provide a brief economic explanation for what happened to economic output and inflation because of the events described above. Also be sure to discuss where economic output and inflation finally settle at the end of the adjustment process