Assume that recently the following has occurred: Energy prices have increased over the past two years. House prices have increased over the past two years. Government has increased spending significantly over the past 2 years. i. Use an AS AD diagram to explain what is likely to happen to the economy. ii. What would be the appropriate counter-cyclical fiscal policy (include also a discussion of auto-stabilizers)? iii. What are the expectations of this policy in terms of the economy (please use the AS AD diagram) and the governments deficit or surplus?