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Suppose the economy is initially in​ long-run equilibrium. The Fed enacts a policy to . In the​ short-run, this expansionary monetary policy will​ cause:
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Suppose the economy is initially in​ long-run equilibrium. The Fed enacts a policy to . In the​ short-run, this expansionary monetary policy will​ cause:

User George Pavelka
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Answer:

A shift from AD 1 to AD 2 and a movement to point​ B, with a higher price level and higher output.

Step-by-step explanation:

The above is what the expansionary monetary policy of the Federal government will cause in a situation where a policy was introduced on a short-run.

User Drejc
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