For each prompt below, carefully and thoroughly follow the directions. For the graphs, be certain to accurately label all axes, curves, and points as appropriate. Use arrows to indicate the direction of any shifts. Show your work for any calculations. Part 1: The United States and Canada are trade partners. Each country has a zero current account balance and is operating in longrun equilibrium. Assume that inflationary pressure causes the price level in the United States to rise relative to Canada. {a} How will the change in the price level in the United States affect: I U.S. demand for Canadian goods and services? I net exports of the United States? Explain. (b) Illustrate the impact of the change you identied in part (a) on a fully labeled ADAS model for the U.S. economy. Use arrows to indicate any changes in AD, real GDP, and price level. (c) Ceteris paribus, will Canada's national income increase. decrease. or remain the same? (d) On sidebyside and fully labeled foreign exchange market graphs, illustrate the impact of the change in relative inflation on supply ofthe U.S. dollar(USD} and on demand forthe Canadian dollar [CAD]. Use arrows to indicate the change in the equilibrium exchange rate for each currency