Question: Graphically illustrate using the AS-AD model the effect of the transaction conducted by the Federal Reserve on the short-run and the long-run. Be sure to

Graphically illustrate using the AS-AD model the effect of the transaction conducted by the Federal Reserve on the short-run and the long-run. Be sure to label the axes and curves. Use arrows to show shifts in the curves, and mark the following equilibrium points: "A" for initial equilibrium; "B" for the short-run equilibrium; "C" for the long-run equilibrium.

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