Consider a world in which prices are sticky in the shortrun and perfectly exible in the longrun. APPP may not hold in the short run but does hold in the long-run. The world has two countries, the U.S. and Japan. Both countries are initially in a long-run equilibrium with fixed money supplies. a. (20 points) Suppose at time T, real GDP in the United States falls permanently. Draw two diagrams with the money market diagram for the US on the left and the expected return in $;' exchange rate ($fyen) diagram on the right. Label the short-nut (impact) effect as point(s) B and the long-run effects as point(s) C