Assume that the economy of Wineville is a large producer of grapes, wine and wine bottles. Originally, its economy was in the position where its actual GDP equalled its potential GDP. However, there was a sudden and large increase in the demand for grapes, wine and wine bottles in Wineville from Wineville's neighbouring country, Boozeland. The president of Wineville, Mr Chardonnay was pleased. a) Using the aggregate demand and aggregate supply model illustrate and explain the short-run impact of an increase in the demand for grapes, wine and wine bottles from Boozeland on Wineville's economy. b) After the increase in demand what type of output gap is the economy of Wineville experiencing and what would you expect to have happened to unemployment? c) If Mr Chardonnay or the Central Bank of Wineville (Bank of Wineville Society, BWS for short) does not intervene in the economy after the increase in demand for grapes, wine and wine bottles, illustrate and explain the long-run impact of this using the aggregate demand and aggregate supply model on a new diagram. (3 marks) d) Explain why this long-run impact may be problematic? (e) If the workers in Wineville face a perfectly competitive labour market, illustrate and explain the impact of an increase in the level of immigration to Wineville from workers in Boozeland on Wineville's labour market.