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Author Question: Refer to Figure 15-6.In the figure above, if the economy is at pointA, the appropriate ... (Read 241 times)

Kthamas

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Question 1

Use a graph to show the effects of a contractionary monetary policy to reduce inflation and move an economy back to potential real GDP. Explain what happens to aggregate demand, real GDP, and the price level.



Question 2

Figure 15-6













Refer to Figure 15-6. In the figure above, if the economy is at point A, the appropriate monetary policy by the Federal Reserve would be to


◦ lower interest rates.
◦ raise interest rates.
◦ lower income taxes.
◦ raise income taxes.


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Marked as best answer by Kthamas on Mar 16, 2019

flexer1n1

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flexer1n1

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