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Discuss the monetary policy process

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Reference no: EM132235664

Suppose the Fed has observed the economy is experiencing Demand-Pull inflation and a positive output gap.

  • Discuss the monetary policy process and tools that can be used to address an inflationary output gap.
  • Depict the impact of these policy actions in the AD-AS model.
  • What happens to the equilibrium price level and output level? 

Reference no: EM132235664

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