Assume the country of Oosa is currently in equilibrium at full employment. Now assume that the banks of the country of Oosa no longer have money to lend out to businesses and consumers due to a combination of bad investments by banks and defaults on loans by a growing number of customers.

Based on your answers in the previous questions, draw a correctly labeled graph of the short and longrun Phillips Curve. Label you initial equilibrium(before problems in the banks) "A" and the equilibrium after the bank liquidity problems ""8 *