(Solved): The following graph shows the long-run aggregate-supply curve (LRAS), the short-run aggregate-suppl ...

The following graph shows the long-run aggregate-supply curve (LRAS), the short-run aggregate-supply curve (AS), and the aggregate-demand curve for an economy. The economy is in with unemployment and output. To return the economy to the natural rate of output, the Fed could government bonds. On the following graph, illustrate the effect of the open market operation the Fed will need to perform to return the economy to its natural rate of output. Show the resulting change in the interest rate.