Question 1 (14 points) Suppose that a public health crisis signicantly increases the cost of producing goods and services in a country. a. {7 points). Assume there is no policy actions by the central bank and governments. Use the aggregate demandaggregate supply model to illustrate graphically the impact in the short run and the long run of this shock at the production side. State in words what happens to prices and output in the short run and the long run. in. {7 points). Assume the central bank uses monetary policies to combat and accommodate the negative impact of the shock. Use the aggregate demand- aggregate supply model to illustrate graphically the policy impact in the short run and the long run. State in words what happens to prices and output in the short run and the long run