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-In the Above Figure, If the Economy Is at Equilibrium

Question 148

Multiple Choice

-In the above figure, if the economy is at equilibrium at E<sub>1</sub>, the Fed would most likely A) adopt a contractionary monetary policy. B) adopt an expansionary monetary policy. C) attempt to lower the aggregate demand in the economy. D) attempt to lower the price level below 120.
-In the above figure, if the economy is at equilibrium at E1, the Fed would most likely


A) adopt a contractionary monetary policy.
B) adopt an expansionary monetary policy.
C) attempt to lower the aggregate demand in the economy.
D) attempt to lower the price level below 120.

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