LUDU with the onset of COVID-19, the Fed, led by Fed Chairman Jerome Powell, lowered its target interest rate (the federal funds rate) by 1.5 percentage points, to a range of 0.00 0.25 percent. This was done with 2 rate cuts during March 2020 Consider the aggregate demand aggregate supply diagram below, which represents the macroeconomy. Suppose the market is initially with the onset of COVID) at an equilibrium at point A What effect will the Fed's actions have on this economy? ERAS SRAS Price level Chung 2009=100 AD GDP GDP AD GDP GDP Real GDP (trillions of 2009 dollars) Actual GDP will increase. Potential GDP will increase. Actual and potential GDP will increase. Actual and potential GDP will remain unchanged