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-In the Above Figure, Assume the Aggregate Demand of the Economy

Question 318

Multiple Choice

-In the above figure, assume the aggregate demand of the economy is AD2 and the Fed actions move aggregate demand to AD1. In this situation, the Fed has practiced A) contractionary monetary policy. B) expansionary monetary policy. C) irresponsible fiscal policy. D) Keynesian fiscal policy.
-In the above figure, assume the aggregate demand of the economy is AD2 and the Fed actions move aggregate demand to AD1. In this situation, the Fed has practiced


A) contractionary monetary policy.
B) expansionary monetary policy.
C) irresponsible fiscal policy.
D) Keynesian fiscal policy.

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