Suppose a country encountered an economic depression and its economy suffered a recession. The economic depression makes the unemployment rate higher, which leads to the decrease of income and output level.

A. Suppose a country has a small current account deficit after an economic crisis. Please show the location of the country in the ii-xx chart.

B. When a country encounters an economic crisis (high unemployment leads to a decline in output and income), what kind of exchange rate movement and fiscal policy do you think the government should adopt to restore the internal and external balance?

C: Do you think the methods in B (exchange rate movement and fiscal policy) are easy to implement? What difficulties do you think you may encounter in the implementation process?