Scenario The economy of Chicagolandis amently producing $60 Million worth of goods andservices (a ment real GDP). Ful employment atput for Chicagoland is $/5 Milion wathd goods and savices (ful employment real GDP). It has recently been expanending unusual inflationas well. "This has acquired dutoanegat5/R Ashock 1. UsenADA graphshothemacroeconomicago lamtellgrapdorrectly, a Fist, showthe longnn equilibriumd Chicagoland usingaggregate canand(AD) and shortinaggregatep(RAStylemploymenttheulemploymetput Y,fandhcorrespondidevel L. b. Then use YI torepresent the a met rate of output and PLI torepresent the ament price level 2 Istheurrentofunemployhighmedowehatheaturalofunemployment doyoknow 3 Recall, that the Federal reserve has a dual mandate of a steady rate of inflation and full employnehtollthesetheoncehatthe edasnthiscenario 4 If the Fed wants to address this issue, should it dosomething to lower interest rates or increase interest rates? What open market operation will the Fedneed to conduit to change the interest rate 5 Dawa gaph of the money market. Use M torepresent the ament money supply andil to represent the current interest rate. Show the effect on the money market of the open market operation youspecifiedin# Besuretoshowthe changeinthemoney supply andthe changein thentereatesaresuotthshiftthenoneupply (6 Fill in the following "chain of events". Choose the appropriate change for each factor, in parenthaswritantholankne Offchan Basedon what youhateined for #4, while condiding openmarket operations, what will the