Po P: P (20) This graph depicts a change in the macroeconomy caused by the Federal Reserve lowering the required reserve ratio. After this Fed action, what is the short-run price level? LRAS SRAS P Pul Pol AD -AD Y (21) Most economists believe that in the short run, an increase in the money supply will raise prices by the same proportional amount increase output decrease output decrease velocity (22) In the short run, contractionary monetary policy causes output to and prices to rise, rise rise, fall full rise fall:fall (23) As the graph illustrates,consumers are worried about the future and have begun saving more money. If the Fed does not intervene in this situation, what will happen to the price level in the long run? Prices will increase. Prices will stay the same. Prices will decrease. There is insufficient information to answer the question CRAS SRAS