What good outcomes as well as bad outcomes will result

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Suppose the U.S. economy is in a recession and there is rising inflation.  Suppose you are in charge of monetary, fiscal, and exchange rate (i.e., influencing the value of the dollar) policies.  Using the AD/AS model, illustrate and discuss the options available to you which would end with the economy in a long run equilibrium.  To the extent possible, also discuss the implications of your various options—what good outcomes as well as bad outcomes will result. 

Reference no: EM13308469

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