Please help with my AP Macro worksheet!

UNIT 7 Assignment 1: Chapter 17 - Monetary Policy Graphing and short answer questions (10 points each) Complete the graph FIGURE 17.1 Federal funds rate (percent per year) RS - . .. . RD 60 70 90 100 110 Reserves on deposit at the Fed (billions of dollars) 1. Figure 17.1 (above) shows the market for reserves. a. What is the equilibrium federal funds rate? b. If the Fed wants to change the federal funds rate to 2 percent, what can the Fed do? c. Through what method will the Fed change the federal funds rate to 2 percent? Complete the graph " FIGURE 17.3 Price level (GDP price index, 2009 = 100) Potential GDP 120- 110 100 90 AD 14 16 17 18 19 Real GDP (trillions of 2009 dollars) 2. Figure 17.3 (above) shows the economy in its initial equilibrium. a. What is the equilibrium real GDP and price level? To move the economy back to potential GDP, should the Fed raise or lower the federal funds rate? Why? b. Supposing that the Fed undertakes the correct policy to restore real GDP to potential GDP. In Figure 17.3 show the effect of that policy.FIGURE 17.4 " FIGURE 17.5 Federal funds rate (percent) RS Nominal interest rate (percent) MS 5 5 ..1. 3 RD MD 90 91 92 93 3.1 3.2 3.3 3.4 Reserves on deposit at the Fed Real money (billions of dollars) (trillions of 2009 dollars) FIGURE 17.6 " FIGURE 17.7 Real interest rate (percent) Price level (GDP price index) SLF 140 Aman AS 130 120 1 110 DLF AD 6.0 6.1 6.2 6.3 15.0 15.5 16.0 16.5 Loanable funds Real GDP (trillions of 2009 dollars) (trillions of 2009 dollars) 3. Use Figures 17.4 through 17.7 (above) to show the effect of the Fed conducting an open market purchase that increases the supply of reserves by $1 billion.FIGURE 17.4 " FIGURE 17.5 Federal funds rate (percent) RS Nominal interest rate (percent) MS 5 5 ..1. 3 RD MD 90 91 92 93 3.1 3.2 3.3 3.4 Reserves on deposit at the Fed Real money (billions of dollars) (trillions of 2009 dollars) FIGURE 17.6 " FIGURE 17.7 Real interest rate (percent) Price level (GDP price index) SLF 140 Aman AS 130 120 1 110 DLF AD 6.0 6.1 6.2 6.3 15.0 15.5 16.0 16.5 Loanable funds Real GDP (trillions of 2009 dollars) (trillions of 2009 dollars) 3. Use Figures 17.4 through 17.7 (above) to show the effect of the Fed conducting an open market purchase that increases the supply of reserves by $1 billion