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Refer to the above graphs, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve, respectively. All numbers are in billions of dollars. The interest rate and the level of investment spending in the economy are at point D on the investment demand curve. To achieve the long-run goal of a noninflationary full-employment output Qf in the economy, the Fed should:

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Lanuel

To achieve a noninflationary full-employment output in the economy, the Fed should decrease aggregate demand by increasing the interest rate from 4% to 6%.

What is NIRU?

NIRU is an acronym for noninflationary rate of employment and it can be defined as the rate of employment above which inflation of goods and services are expected to decline.

Based on the interest rate and Read GDP graphs, the Federal Reserve System (Fed) should decrease aggregate demand (AD) by increasing the interest rate in the country from 4 percent to 6 percent, so as to achieve the longrun goal of a noninflationary full-employment output Qf within the economy.

Read more on Federal Reserve here: https://brainly.com/question/23787400

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