(Figure: Shifts in SRAS and AD) If the economy is at short-run equilibrium point b because of a negative supply shock, the Federal Reserve may focus on price stability and enact a restrictive monetary policy, thus shifting the new equilibrium to point _____. As a result of this, the price level would _____ and real output would _____.

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The Answer of (Figure: Shifts in SRAS and AD) If the economy is at short-run equilibrium point b because of a negative supply shock, the Federal Reserve may focus on price stability and enact a restrictive monetary policy, thus shifting the new equilibrium to point _____. As a result of this, the price level would _____ and real output would _____.

(Figure: Shifts in SRAS and AD) If the Economy Is