Figure 34-9 P a LRAS SRAS AD YY₁ Refer to Figure 34-9 and answer the following questions. (a) Suppose the economy is cur

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Figure 34-9 P a LRAS SRAS AD YY₁ Refer to Figure 34-9 and answer the following questions. (a) Suppose the economy is cur

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Figure 34 9 P A Lras Sras Ad Yy Refer To Figure 34 9 And Answer The Following Questions A Suppose The Economy Is Cur 1
Figure 34 9 P A Lras Sras Ad Yy Refer To Figure 34 9 And Answer The Following Questions A Suppose The Economy Is Cur 1 (69.05 KiB) Viewed 23 times
Figure 34-9 P a LRAS SRAS AD YY₁ Refer to Figure 34-9 and answer the following questions. (a) Suppose the economy is currently at point A. Explain what monetary policy the Federal Reserve can conduct to bring output to its natural level. [8 points] (b) Suppose the economy is currently at point A. Explain what fiscal policy the government can conduct to bring output to its natural level. [8 points] (c) Suppose the economy is currently at point A. In addition, suppose that neither the Federal Reserve nor the government does anything. What must happen to the short- run aggregate supply curve to get output to its natural level? Explain. [5 points] (d) Can the long-run aggregate supply curve shift to point A? Name two events that may cause this shift. [4 points]
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