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The Aggregate Demand Curve Is Y = 15 - 0

Question 8

Multiple Choice

The aggregate demand curve is Y = 15 - 0.2π when the inflation rate falls from 6 percent to 5 percent.Then,output increases from 13.8 to 17.The response of monetary policy to the inflation decline has been ________.


A) autonomous tightening
B) automatic adjustment
C) autonomous easing
D) to increase autonomous spending
E) none of the above

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