Question 26 (1 point) 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 LRAS Price level (GDP dela 2009-100) SRASI PI AD con AD GDP GDP Real GDP (trillions of 2009 dollars) Employment will decrease. The rate of inflation will decrease. The rate of economic growth will increase. Unemployment will increase