4. In 2011, a record-breaking earthquake hit Japan; the earthquake was followed immediately by a giant tsunami (a tidal wave). This natural disaster destroyed a lot of the productive capacity of the Japanese economy, including factories, roads, and power-generating facilities.

1. Use Aggregate Demand-Aggregate Supply analysis to explain the short-run effects of the natural disaster on the Japanese economy. In particular, what did the tsunami do to Japanese GDP, unemployment rate, and inflation rate?

b. Use Aggregate Demand-Aggregate Supply analysis to explain the effects of the natural disaster, which hit Japan and not the US, on the US. In particular, what did the tsunami do to US GDP, unemployment rate, and inflation rate?