objective is to use the provided image to answer its questions

Suppose the economy is in a long-run equilibrium, as shown on the following graph. Now suppose a fall in government purchases reduces aggregate demand. On the following graph, shift a curve or adjust the point to reect the short-run e'ect of reduction in government purchases. LRP SRF'C Short-Run EM LRPG Ination Rate Unen'lployn'ranl Rate True or False: If the Fed undertakes expansionary monetary policy, it can return the economy to its original unemployment rate but the ination rate will be higher. True False Now, suppose the economy is back in long-run equilibrium, and then the price of imported oil n'ses. On the following graph, shi' a curve or adjust the point to reflect the shortrun e'ect of the increase in the price of oil. 0 SRF'C Short-Rm EM _n_ 2 i g True or False: If the Fed undertakes expansionary monetary policy, it can return the economy to its original ination rate but the unemployment rate will be higher. True False