The President, Congress, and the Fed intended to achieve economic help. The short-term stimulus checks were so the market didn't crash drastically to help people stay afloat due to the increase in unemployment and inflation. According to Figure 3(a) & (b) (Mankiw,2022), graph 3(a) demonstrates the change in interest rates with a higher supply of money. Figure 3(b) demonstrates the shift in aggregate demand and the increase in money supply. The graph shows the shift to the right, showing the increase in the quantity of goods and services demanded at a given price.

In the short run, according to Figure 5 Chapter 35 (Mankiw,2022), the economy was higher due to inflation at the time, but unemployment rates were much higher due to it. The hope and goal is to basically have the economy have equilibrium by having the expected inflation rate and actual inflation rate meet in the middle so the unemployment rate goes back to its natural state. The Fed "cools" the economy by producing more money and lowering interest rates. Systemic risk is the possibility that an event could trigger severe instability or collapse an entire industry. A tighter monetary policydampens consumption and investment, reducing demand for consumer and business products.