Consider a country that experiences a positive, onetime shock to its output. Assume that output is initially $1,200 per year and the world real interest rate is 6%. In year 0, output increases by 2U%, after which it returns to its initial level. 3. Calculate the present value of output in this economy. h. Assume the economy is a closed economy. Calculate the present value of consumption and level of consumption each period, assuming the country engages in consumption smoothing. 1:. Assume the economy is an open economy. Calculate the present value of consumption and the level of consumption each period, assuming the country engages in consumption smoothing