Refer to the graphs above, in which the numbers in parentheses near the AD₁, AD₂, and AD₃ labels indicate the level of investment spending associated with each curve. All figures are in billions. The economy is at equilibrium at the intersection of the aggregate supply curve and aggregate demand curve AD₃. What policy should the Fed pursue to achieve a noninflationary full-employment level of real GDP? A) Increase the money supply from $75 to $150 billion B) Increase the money supply from $150 to $225 billion C) Decrease the money supply from $225 to $150 billion D) Make no change in the money supply

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The Answer of Refer to the graphs above, in which the numbers in parentheses near the AD₁, AD₂, and AD₃ labels indicate the level of investment spending associated with each curve. All figures are in billions. The economy is at equilibrium at the intersection of the aggregate supply curve and aggregate demand curve AD₃. What policy should the Fed pursue to achieve a noninflationary full-employment level of real GDP? A) Increase the money supply from $75 to $150 billion B) Increase the money supply from $150 to $225 billion C) Decrease the money supply from $225 to $150 billion D) Make no change in the money supply

Refer to the Graphs Above, in Which the Numbers in Parentheses