The Venezuelan currency is the bolivar (Bs). A major agricultural export is bananas. Initially, the Venezuelan economy is at its long run, full-employment equilibrium. Label this as point A on a DD-AA graph. A) Suppose that Venezuelan consumers temporarily get nervous about job prospects and cut back on their purchases. Illustrate this on your DD-AA graph, labelling this new short-run equilibrium with a "B." How is Venezuelan output affected?

B) Are Venezuelan banana exporters helped or harmed by the temporary drop in domestic consumption? Explain, referring to your graph from part a.