e. Again, suppose the economy is initially at a long-run equilibrium and that the Fed then increases the money supply. In the following three diagrams, assume the resulting inflation is expected. Show the long-run equilibrium by shifting the appropriate curve or curves and/or placing the point for long-run equilibrium in its appropriate place. IS-LM Model Long-run equilibrium LM Interest Rate, r IS Income, Output, Yf. Shift the appropriate curve or curves to show the short-run and long-run adjustments. Then place the point for long-run equilibrium in its appropriate place. AD-AS Model LRAS Long-run equilibrium SRAS Price Level, P AD Income, Output, Y