Show how to derive the IS curve when exports are given by the following equation: EX_t/ Y_t = a_ex + qY _t . Assume the remainder of the model is unchanged from the original setup in Chapter 11. Show that the original IS-curve is given by a particular version of the new IS-curve with the new equation for exports when q = 0. Draw the IS-diagram (that is, the diagram with the real interest rate, R, on the vertical axis and short-run output, Y, on the horizontal axis) for two cases: 1) The original IS-curve when q = 0 and the new IS-curve when q = 0.5. Suppose the real interest rate increases by 1 percentage point. What happens to short-run output in the two models? Is short-run output more sensitive to changes in the real interest rate in one of the models? Give a careful explanation.