9. Suppose the economy had been operating at its potential level of real GDP in the past, but net export and consumer spending have suddenly and substantially declined. The decline is expected to last for a significant period of time. (a) Use an appropriate diagram to illustrate the initial impact of stated event on the economy. (b) What impact would the event have on the economy's [i] price level, [ii] level of real GDP, [iii] unemployment rate, and [iv] government budget deficit [Le. increase, decrease, no effect, indeterminate]? [i] Price: [ii] Real GDP; [ii] Unemployment: [iv] Budget Deficit: (c) Describe two different examples of government fiscal policy that could be used to correct the situation outlined at the start of the question. (2 marks) [i] Use an appropriate diagram to illustrate the impact of stated event on the economy of the fiscal policies you have described