Romania is a member of the European Union (EU), and its currency, the Romanian leu (RON) is fixed to the euro (). Recently, the European Central Bank (ECB), the central bank of the European Union, decided to increase the volume of quantitative easing. In addition, the market believes the action carried by the ECB will last for a long time. Note: In this question, let the U.S. dollar (US$) be the foreign currency. In your diagrams and written explanation, use the subscripts "R" and "EU" to denote all the variables and terms used for Romania and the EU respectively. You must follow this notation; otherwise, you will receive a grade of ZERO for the whole question

a) What happens to the short-run equilibrium levels of output in the EU and Romania if they do not have the same business cycles? What happens to the RON/US$ exchange rate in the short run? Explain, and use TWO DD-AA diagrams to support your explanation. (10 points)

b) According to the GG-LL model, what happens to the break-even degree of economic integration between Romania and the EU if most of the shocks faces by Romania come from the money market? Explain and support your answer by one GG-LL diagram.