Consider the aggregate demand-aggregate supply diagram below, which represents themacroeconomy. Suppose the market is initially at an equilibrium at point A. What effect willthe Fed's actions have on this graph?Price level(GDP deflator.2009 = 100)P1LRASSRASIAD₁GDP₁GDPReal GDP (trillions of 2009 dollars) The aggregate demand curve will shift to the left.The aggregate demand curve will shift to the right.The long-run aggregate supply curve will shift to the left.The short-run aggregate supply curve will shift to the right.

Aggregate demand (AD) is the total demand for all goods and services in an economy at a particular…

Consider the aggregate demand-aggregate supply diagram below, which represents the macroeconomy. Suppose the market is initially at an equilibrium at point A. What effect wil the Fed's actions have on this graph? Price level (GDP deflator, 2009=100) PI LRASI SRASI AD₁ GDP GDP Real GDP (trillions of 2009 dollars)