Illustrate what way might society gain if fed implements

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Reference no: EM1371078

Q. You learned that Federal Reserve can eliminate a recessionary gap in short run by undertaking a policy action that raises aggregate demand.

A) Propose a monetary policy action that could eliminate a recessionary gap in short run.

B) In illustrate what way might society gain if Fed implements policy you have proposed instead of simply permitting long-run adjustments to take place?

Reference no: EM1371078

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