:11. Consider an economy that is initially in a longnrun equilibrium at point 1 in the graphs below. [Like last questien, you can draw the linesfbeses to en the diagram below. To label a peint, you can use InsertShapesDyal to get a small clot] 1i 1i 3i LHA51 Lees, Suppose that, starting from point 1, the Fed chooses to ease monetary policy giyen the current crisis. Shift the appropriate cu ryets] in the graphs above. Label the new short'run equilibrium as point 1 in all five graphs. Suppose there are no more changes in monetary policy and the economy returns to long-an equilibrium through the selfscorrecting mechanism. Will the level of ination in the new long; run equilibrium be higher, lower, or unchanged from the original leyel Hi? [You do M need to shift moves or show the new long-run equilibrium on the graphs. Just write the answer below.] Answe r: Will the real interest rate in the new long'run equilibrium be higher, lower, or unchanged from the original level 11? Answe r