A flexible exchange rate economy, has C = 14 + .9YD, I= 10-r, MD = .1Y-r, G = 4, R = 10 +.1Y, MS = 5, e = 10-rand NX = 6-.01Y-.5P + e. A winter ice storm ASo = 5p rotates to AS1 = 2.5p. In your answers to below, assume that wages are sticky so that there will be no tendency for this economy to revert towards %3D %3D potential GDP. Provide labelled diagrams for AS/AD and NS/NAF to illustrate how prices and real GDP would a. respond to this shock. The central bank chooses to intervene and keep the exchange rate fixed at e = eo. Calculate and illustrate the change in money supply that will be required and how this policy response would affect y, p and r. Provide labelled diagrams for MD/MS and IRP to illustrate how interest rates and the exchange rate would be affected by this policy. b.