Assume that the economy is producing at a level below full employment GDP (but not in the Keynesian range of the Aggregate Supply curve). From this class and your Principles of Macroeconomics class, you know that we need to increase Aggregate Demand to move the economy back toward full employment. A. Briefly describe how the government can use fiscal policy to increase Aggregate Demand (AD). How would the increase in AD impact inflation and unemployment? Explain. (4) B. Briefly describe how the Federal Reserve can use monetary policy to increase Aggregate Demand (AD). What is the tool that they would most likely use to increase AD? Why? (4) C. Explain how monetary policy can impact interest rates and AD. Use a money market diagram and the definition of Aggregate Demand to demonstrate your