Secure rights to land provided colonists with incentive to use the land productively, conserve it and invest in it

The 12 regional Fed banks do not:

A. Provide loans to banks. B. Hold reserves for banks. C. Accept deposits from individuals. D. Provide currency to banks.

Suppose the economy is in a long-run equilibrium when a temporary, favorable aggregate supply shock occurs. On the graphs above, show what happens to bring the economy back to long-run equilibrium, assuming that there is no policy response

In words, explain why "no response" is the best policy.