Question: Answer entire question seen in picture below as well as fill in the blank answer choicesFirst blank choices: an expansion or recession2nd blank: low or

Answer entire question seen in picture below as well as fill in the blank answer choicesFirst blank choices: an expansion or recession2nd blank: low or high 3rd blank: low or high4th blank: sell or buy

CENGAGE | MINDTAP Homework (Ch 34) Keep the Highest / 2 J. Problems The following graph shows the long-run aggregate-supply curve (LRAS), the short-run aggregate-supply curve (A5), and the aggregate-demand curve for an economy. LRAS -O- Aggregate Demand Aggregate Supply Price Level Quantity of Output The economy is in with unemployment and output To return the economy to the natural rate of output, the Fed could _ government bonds. On the following graph, illustrate the effect of the open market operation the Fed will need to perform urn the economy to its natural rate of output. Show the resulting change in the interest rate. Money But O Money Demand -0- Money Supply Interest Rate Quantity of Money On the original graph, show the effect of the open market operation on output and the price level

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