[Please note that you need to complete drawing the AD-AS diagram on your own piece of paper as you explain your answers for both part (a) and part (b) of this question. Take a photo-shot (or screen short) of the completed diagram ONLY and upload it in the uploading section below following this question. However, all your explanations MUST be written in the space provided below following the question] Following a development of worsening relationship between Country A and Country B, the government of Country B has imposed trade restrictions on Country A's commodities and resources. This has lowered Country B's demand for Country A's commodities and resources substantially and thus decreased Country A's exports to Country B. Country B is Country A's largest trading partner. Suppose Country A's economy was initially at the full employment long-run equilibrium and assume that Country A keeps its policy measures and everything else unchanged. Given that, answer the following questions. (a) Using the AD-AS diagram below as a starting point, first show where the Country A's economy was initially. Then, discuss and complete the diagram showing how Country B's trade restrictions on Country A's commodities and resources would have affected the equilibrium output, price level and the unemployment rate in Country A in the short run. (hint: Think about AD =C+I+G+ (XM)) Price level LRAS = potential GDP | X Price level LRAS = potential GDP SRASO ADO 00 Ream?! (b) The government Country A would be concerned about the short-run effects of such trade restrictions you identified in part (a) above. If that is the case in the short run, what type of fiscal policy (expansionary or contractionary) would you advise the government to implement? What are the two key fiscal policy instruments that government can use and explain how such a fiscal policy you would advise would adjust the economy in Country A. Assume that the Central Bank of Country A keeps its monetary policy and everything else unchanged. Continue using the ASAD diagram you used in (a) to explain your