Graph (1) Graph (2) Graph (3) Graph (4) LRAS LRAS LRAS LRAS SRAS SRAS SRAS1 SRAS2 SRAS1 SRAS2 AD1 AD2 AD1 AD2 AD AD2 Graph (5) Graph (6) Graph (7) Graph (8) LRAS LRAS LRAS LRAS SRAS2 SRAS1 SRAS2 SRAS1 SRAS1 SRAS1 SRAS2 SRAS2 +HHHHHH AD1 AD2 AD2 2 AD1 AD2 AD2 AD1Please use these graphs for our exam. Choose the graph that best represents the answer to the question. Graph (A) Graph (B) Graph (C) Graph (D) $1 D1 D2 Graph (E) Graph (F) Graph (G) Graph (H) $2 51 $2 $1 $2 $1 $2 D1 D2 `D2 D2 D1 D2 D1The unemployment rate is measured at 3.5% and the inflation rate is 9%, the Fed meets to discuss what action to take to stabilize the economy. Based on this scenario, respond to the following questions in the text box below. . What type of output gap does the Fed determine the economy is experiencing? . What type of policy will the Fed use? Will it be contractionary or expansionary? . Using your graphing document, select the graph that best demonstrates how this policy will impact the economy. . How will this impact unemployment, real GDP and the price level? Edit View Insert Format Tools Table 12pt ~ ParagraphThe economy is experiencing an unemployment rate of 7.5% and real GDP is declining. The President and Congress are working together to decide what to do. Based on this scenario, respond to the following questions in the text box below. . What type of output gap does the government determine the economy is experiencing? . What tool and type of policy will the government use? Will it be contractionary or expansionary? . Using your graphing document, select the graph that best demonstrates how this policy decision will impact the economy. . How will this impact unemployment, real GDP and the price level? Edit View Insert Format Tools Table 12pt Paragraph BI U A 2