4) For an economy operating in a state of short-run equilibrium, the government needs extra funds to finance its excessive expenditures. For this reason, it decided that it must achieve a budget surplus to be able to finance its excessive expenditures, and it succeeded to achieve a surplus in its budget. a. Explain what is meant by a Budget Surplus and when does it occur in an economy? What is the effect of such a decision (achieving a budget surplus) on the market of Loanable Funds? Explain your answer in words and graph. (1.5 points) b. Explain the effect of this decision on the market economy using AD-AS model. Draw graph of AD-AS and explain effect in words. (1.5 points) c. Is "achieving a budget surplus" a good decision to help this government in financing its excessive expenditures? If yes, explain why and how this is a good decision and if no, explain what could you suggest as a better alternative decision or policy to be followed by the government to achieve this objective?. (1 points)