2. If the Fed wishes to lower interest rates through a liquidity effect, what should it do to the money supply? (This question is worth 1 point) 3. What is the shape of a long run aggregate supply curve? (This question is worth 1 point) 4. What happens to aggregate demand when the federal government decreases taxes? How does this impact output in the short run? How does it impact the price level in the short run? You may want to use a properly labelled graph to answer this question. (This question is worth 3 points)