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Figure: Fed Policy If an Economy Is Operating Below

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Figure: Fed Policy Figure: Fed Policy If an economy is operating below its long-run potential growth rate as shown in the graph,what can the Fed do to bring the economy back toward its long-run growth rate? Explain. If an economy is operating below its long-run potential growth rate as shown in the graph,what can the Fed do to bring the economy back toward its long-run growth rate? Explain.

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To boost AD back toward the long-run gro...

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