Advanced Placement (AP), 05.05.2020 10:25 rubianny03

Draw correctly labeled side-by-side graphs of the money market and AD-AS economy in LRE.

part a. Assume the Fed conducts contractionary monetary policy. Reflect the short-run effect of this policy in your money market and AD-AS graphs.

part b. What will happen in the long run in the money market?

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Draw correctly labeled side-by-side graphs of the money market and AD-AS economy in LRE.

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