In the short run, if the Fed undertakes contractionary monetary policy, the effect will be to shift the:

Name: In the short run, if the Fed undertakes contractionary monetary policy, the effect will be to shift the:
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Contractionary monetary policy, such as raising interest rates or reducing the money supply, typically reduces aggregate demand (AD) because it makes borrowing more expensive and reduces spending. This leads to a leftward shift in the AD curve.

In the Short Run, If the Fed Undertakes Contractionary Monetary