Use the following to answer questions 50-54:
Figure: Monetary Policy and Demand Shocks 
-(Figure: Monetary Policy and Demand Shocks) Refer to the figure.In the figure,assume the initial real growth rate of the economy is 3% when a negative aggregate demand shock shifts the AD curve from AD1 to AD2.The correct monetary policy response is to:
Definitions:
Epinephrine
Serving as both a hormone and a neurotransmitter, adrenaline is vital for the body's fight-or-flight reaction to threats or stress.
Cannon-Bard Theory
A theory in psychology suggesting that emotions and physiological reactions such as heart rate increase occur simultaneously.
James-Lange Theory
The notion that emotions stem from the body's reactions to different situations.
Conscious Thinking
The process of being aware of and able to control one's thoughts and cognitive processes.
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Q233: Which shock can the Fed deal with