a. Using the AD/AS framework, EXPLAIN carefully what would happen to the United States economy given what is happening in the Japanese economy. Which curve in the US AD/AS graph is directly impacted and how? (5 points) b. What specific FISCAL policies could the government could use to help the United States return to both short-run and long-run equilibrium given the situation you described in a? (4 points) Are these expansionary or contractionary fiscal policies? (1 points) c. Based on the fiscal policy you proposed in (b), explain carefully which curve is directly impacted and what happens to that curve. (5 points) d. Explain carefully WHY this fiscal policy would most likely create a budget deficit or a budget surplus in the year the fiscal policy in b was implemented. (5 points) e. Based on your answer to a, would the Federal Open Market Committee (FOMC) order raising or lowering the interest rate in the federal funds market (its operating target)? (4 points) f. To hit the operating target (raising/lowering the federal funds rate), the Federal Reserve will change its 'administered rates.' List the interest rates the Federal Reserve controls (administers) (3 points) and whether the Fed would raise or lower each rate to reach the operating target set by the FOMC (3 points) Using the AD/AS framework, this question asks about how what is happening in a foreign economy might impact the U.S. economy. As a starting point, assume that the U.S. is currently in both short-run and long-run equilibrium. Japan is experiencing a strong economy and strong growth. Japan's GDP and income is rising.