If LRAS = $500 billion, RGDP = $700 billion, and MPC = .8, then what should the Fed do?

Be Specific. Also draw and label both the current situation and what would occur as the government impacted the economy through their actions.

What are the impacts in the short run of the above actions on the following:

the market interest rate-

the quantity of money demanded-

investment spending-

aggregate demand-

potential output-

the price level-

equilibrium RGDP-