The Question Assume an economy operating below full employment. A Draw a correctly labeled ADIAS graph showing: I. the problem in the economy ll. current price level and output lll. full employment output B Identity an open market operation that the Fed could implement to resolve the problem. 0 Using a correctly labeled money market graph with a sidebyside investment demand graph. ShDW the effect of the policy you identied in part B on each of the following: I. nominal interest rates ll. quantity of investment demanded D On your graph in part A' show the shortmn effects of the action you identied on each of the following: I. aggregate demand explain why AD shifts ||. output lll. price level E Given your answer in part C, explain what will happen to each of the following: I. the international value of the dollar II. the nation's exports and imports