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On the following graph, illustrate the effect of the open market operation the Fed will need to perform to return the economy to its natural rate of The following graph shows the long-run aggregate-supply curve (LRA5), the short-run aggregate-supply curve (45), and the aggregate-demand curve output. Show the resulting change in the interest rate. for an economy. (? ? Money Supply LRAS Adding agetoutby Aggregate Demand Money Demand -0- -0- Price Level Aggregate Supply Interest Rate Money Supply Aggregate Demand Money Demand Quantity of Output The economy is in with V unemployment and output. Quantity of Money True or False: To re a recession y to the natural rate of output, the Fed could buy O True an expansion On the original graph, show the effect of the open market operation on output and the price level. The economy is in with unemployment and output. True or False: To return the economy to the high rate of output, the Fed could bu low The economy is in with unemployment and _ output. True or False: To return the economy to the natural rate of output, the low puld buy govern high True or False: To return the economy to the natural rate of output, the Fed could buy government bonds. O True O False