For each of the shocks listed below, use the open-economy extension of the threeequation model to show how output (y), inflation (), the real interest rate (r), and the real exchange rate (q) respond to the shock, step-by-step in sequence. Your answer should include a fully illustrated and labeled graphical illustration of the three-equation model and impulse response functions showing the paths of y,,r, and q over time. You should also explain (in words, bullet points fine) what happens sequentially, and how/why each response in the system occurs. (a) A permanent positive demand shock (b) An increase in the central bank's inflation target