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Business, 03.12.2021 22:50 paytonhuff8580

Suppose the economy is experiencing an inflationary gap. Based on available data, the Fed starts implementing contractionary monetary policy, but this moves the economy into a recessionary gap. The most probable explanation is that, because of the total lag in monetary policy, the government did not realize that the economy was already healing itself, i. e., that the A. OSRAS curve was shifting leftward. B. AD curve was shifting rightward. C. OSRAS curve was shifting rightward. D. AD curve was shifting leftward.

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Suppose the economy is experiencing an inflationary gap. Based on available data, the Fed starts imp...
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