-In the above figure, the economy experiences an increase in aggregate demand so that the aggregate demand curve shifts from AD0 to AD2. If the Reserve Bank of Australia wants to offset this change, it will ________.

Question

Quizplus · Accepted Answer

Selling government securities on the open market reduces the money supply, which can help offset an increase in aggregate demand by increasing interest rates and reducing spending.

-In the Above Figure, the Economy Experiences an Increase in Aggregate