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Suppose the economy is in recession. Write a letter to the brand-new chairman of the Fede

 Suppose the economy is in recession. Write a letter to the brand-new chairman of the Federal Reserve suggesting how the Fed might help end the recession. Be sure to explain how a change in monetary policy will affect economic activity.

11) In the aggregate demand/aggregate supply framework, lowering the federal funds rate has what short-run effects on real GDP?

 

12) Explain how the Fed's response to inflation works its through the economy to ultimately affecting real GDP and the price level.

Dec 08 2019 View more View Less

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