Answer the picture as well as these typed questions seen here:Which of the following will happen when the economy makes the transition from its short-run equilibrium to its long-run equilibrium? (Note: Donot adjust the graphs to reflect the transition to the long run.) Check all that apply.O The price level will rise.O The demand for money will fall.O The egullibrium interest rate will fall.Is this analysis consistent with the proposition that the money supply has real effects in the short run but Is neutral in the long run?O YesONo

On the following graph, use the theory of liquidity preference to illustrate the impact of this policy on the interest rate. K Money Supply Money Demand Money Supply Interest Rate Money Demand Quantity of Money On the following graph, use the model of aggregate demand and aggregate supply to illustrate the impact of this change in the interest rate on out and the price level in the short run. LRAS Aggregate Supply Aggregate Demand Aggregate Supply Price Level LRAS Aggregate Demand