1. Assume that the United States economy is operating at less than full employment. f. a. Using a correctly labeled aggregate demand and aggregate supply graph, show the following. i. Full-employment output ii. Current output iii. Current price level b. Identify and open-market operation that could restore full employment in the short run. C. Using a correctly labeled graph of the money market, show how the open-market operation you identified in part (b) affects the interest rate in the short run. d. Explain how the change in the interest rate you identified in part (c) will affect aggregate demand. e. Show on the graph in part (a) how the change in the interest rate you identified in part (c) will affect output and price level. Instead of the open-market operation in part (b), suppose that no policy actions are taken to address the unemployment problem. With flexible prices and wages, explain how each of the following will eventually change. i. Short-run aggregate supply ii. Output and price level