u.1 An article in The Economist noted that in the first half of 2020, the value of UAE oil exports declined and that 'energy firms, which account for around a third of capital spending, are expected to slash investment by nearly 40% this year'. As a result, real GDP in UAE declined during the first six months of 2020. 55 marks a. (i) Use a basic aggregate demand and aggregate supply graph (with LRAS constant) to illustrate this situation. (10marks) (ii) On your graph, show the adjustment back to long-run equilibrium. (15marks) b. Beginning at long-run equilibrium, (i) Use the basic (static) aggregate demand and aggregate supply model to illustrate what happens in the short run when the economy suffers a supply shock, and (15 marks) (ii) Use the basic (static) aggregate supply and demand model to illustrate what happens in the long run following this supply shock. (15 marks)