Question: Question 5 1 ( 2 points ) If the Fed lowers the interest rate, what happens to the equilibrium GDP in the short run? what

Question 51(2 points)
If the Fed lowers the interest rate, what happens to the equilibrium GDP in the short run? what about in the long run?
equilibrium GDP falls temporarily in the short run, but goes back to its original level in the long run.
equilibrium GDP rises temporarily in the short run, but goes back to its original level in the long run.
equilibrium GDP falls in both the short run and long run
equilibrium GDP rises in both the short run and long run
Question 51(2 points) If the Fed lowers the interest rate, what

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