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Business, 11.05.2021 01:10 taylor3932

An economy starts in a long-run equilibrium, but then a severe drought kills crops and dramatically increases the price of food. If the Federal Reserve wanted to stabilize the economy and return it back to full employment, it would Group of answer choices decrease the money supply, which would restore the original price level increase the money supply, but prices would forever be higher decrease the money supply, but prices would forever be lower increase the money supply, which would restore the original price level

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An economy starts in a long-run equilibrium, but then a severe drought kills crops and dramatically...
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