The combined efforts of the Fed and the Treasury in response to the financial crisis following the housing market crash were _______ in restoring aggregate supply to its pre-crisis level, but _______.

Question

Quizplus · Accepted Answer

The combined efforts of the Fed and the Treasury were effective in restoring aggregate supply to its pre-crisis level. However, the economy was left with sluggish aggregate demand, which contributed to a slow recovery and prolonged unemployment.

The Combined Efforts of the Fed and the Treasury in Response