(Figure: Market for Pants) Suppose that the world price of a pair of pants is $30. According to the figure, the total domestic surplus in the free-trade equilibrium _the total domestic surplus in the no-international trade equilibrium by Price 100 Domestic supply 50 Domestic demand 50 100 Quantity of pants [in thousando) O exceeds; $200,000 O falls short of; $400,000 falls short of; $200,000 O exceeds; $400,000Suppose that consumers reduce their spending due to Covid-19 as shown below. The appropriate monetary policy response would be to Real interest rate 5% Interest Unchanged Output gap IGDP Unexpected inflation IInflation Output gap reduce the federal funds rate to shift the MP curve downward. O raise the federal funds rate to shift the MP curve upward. O reduce the federal funds rate to shift the IS curve to the right. raise the federal funds rate to shift the IS curve to the left