Based on the given figure, the economy is initially at point A on the monetary policy reaction function (RF₁) and the aggregate demand curve (AD₁) . The actual rate of inflation is π' and the Federal Reserve's target inflation rate is π*₁. 
If the Federal Reserve lowers its target inflation rate to π*₂, then the Federal Reserve's monetary policy reaction function will ________ and the aggregate demand curve will ________.
Definitions:
Good Faith
The sincere intention to be fair, open, and honest, regardless of the outcome of the interaction.
Ordinary Course
Pertains to regular business activities and operations conducted by an entity under normal circumstances.
Security Interest
A financial mechanism that gives a lender priority over the borrower's assets or property in the case of default.
Financing Statement
A document filed by a creditor to indicate a security interest in the personal property of a debtor, used to perfect a lien.
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