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Exhibit 15-3 -To Bring the Economy Shown in Exhibit 15-3 to Its

Question 98

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Exhibit 15-3 Exhibit 15-3 -To bring the economy shown in Exhibit 15-3 to its potential output level,the Fed could A) do nothing and the price level would fall to P' B) do nothing and the price level would remain at its current level C) increase the money supply and increase the price level to P D) increase the money supply and decrease the price level to P' E) decrease the money supply and decrease the price level to P'
-To bring the economy shown in Exhibit 15-3 to its potential output level,the Fed could


A) do nothing and the price level would fall to P'
B) do nothing and the price level would remain at its current level
C) increase the money supply and increase the price level to P"
D) increase the money supply and decrease the price level to P'
E) decrease the money supply and decrease the price level to P'

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