Question 1 (a) Assume an economy is in internal balance but not external balance. Externally, it is experiencing a current account deficit. Also assume that the IB schedule is steeper than the EB schedule. Explain how and why an attempt to restore external balance will disrupt internal balance and what policy would be used to restore external balance. (12.5 marks) (b) Assume an economy is in external balance but not internal balance. Internally, it is experiencing unemployment. Also assume that the IB schedule is steeper than the EB schedule. Explain how and why an attempt to restore internal balance will disrupt external balance and what policy would be used to restore internal balance. (12.5 marks)