3. China and Japan do a lot of international trade with each other. If both countries begin in gener

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3. China and Japan do a lot of international trade with each other. If both countries begin in general equilibrium and then the Peoples’ Bank of China (the centralbank) engages in an autonomous monetary policy tightening:

a. The Japanese AD curve shifts to the right.
b. The Japanese AD curve shifts to the left.
c. The Japanese AD curve shifts to the right and the Japanese AS curve will eventually shift up.
d. The Japanese AD curve shifts to the left and the Japanese AS curve will eventually shift down.

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