Use the IS-LM diagram to analyze the following questions. Be sure to label: i. the axes, ii. the curves, iii. the initial equilibrium values, iv. the direction the curves shift, v. the terminal equilibrium values. a. (8 points) Use the IS-LM graphs to illustrate graphically the short-run impact on output and interest rates of a one-time increase in the price level due to a large increase in oil prices. Explain your answer in words briefly. b. (8 points) How can the Bank of Canada keep the economy from falling into a recession if the budget deficit is reduced? Use the IS-LM graphs to illustrate graphically the impact of both the fiscal policy reducing the deficit and the monetary policy, which prevents output from falling. Explain your answer in words briefly.