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 raises its target inflation rate to π*₃, then the Federal Reserve's monetary policy reaction function will ________ and the aggregate demand curve will ________.
Definitions:
Analytic Work
The process in psychoanalysis aimed at understanding unconscious motivations and resolving inner conflicts.
Adolescents
Individuals in the transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.
Preconscious
Refers to the thoughts, feelings, and memories that are not in immediate conscious awareness but can be easily accessed.
Superego
A component of Freud's psychoanalytic theory, representing the moralistic part of the mind that incorporates social standards and ideals.
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