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Question 174

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Answer the questions below:
(A) What should the Fed do if intlation is at the taret rate and the GDP gap is pasitye?
Esylain u5ing an agregate demand inflation diagram.
(B) What shauld the Fed da if inflation is below the target rate and the GDP gap is positive? Esgalain using an agpegate demand inflation model.

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(A) The Fed shaule increase the interest...

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