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Please help with these macro questions The economy is at the equilibrium shown at point a in the figure. If the Fed Price level (GDP

Please help with these macro questions

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The economy is at the equilibrium shown at point a in the figure. If the Fed Price level (GDP price index. 2005 = 100) Potential AS O A. buys government securities, the economy moves to an equilibrium at point c. 130 GDP O B. sells government securities, the economy moves to an equilibrium at point b. 120 O C. sells government securities, the economy moves to an equilibrium at point c. 110 O D. buys government securities, the economy moves to an equilibrium at point b. O E. None of the above are correct because the economy will remain at point a if the Fed buys or if the Fed sells 100 government securities. 90 AD 11.5 12.0 125 13.0 13.5 14.0 Real GDP (trillions of 2005 dollars)To fight a recession, the Fed can O A. raise the federal funds rate by buying securities. OB. raise the federal funds rate by selling securities. O C. lower income taxes on interest income. OD. lower the federal funds rate by buying securities. OE. lower the federal funds rate by selling securities

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