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Given an upward sloping aggregate supply curve, which of the following would most likely result if the Fed purses restrictive monetary policy?

Given an upward sloping aggregate supply curve, which of the following would most likely result if the Fed purses restrictive monetary policy?
A) The equilibrium price level and output would both increase.
B) The equilibrium price level and output would both decrease
C) The equilibrium price level would decrease but output would stay the same
D) The equilibrium output would decrease but the price level would stay the same.

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Economics-8098576.doc

iven an upward sloping aggregate supply curve, which of the following would most likely result if the
Fed purses restrictive monetary policy?
A) The equilibrium price level and output would both...

Sign up to view the full answer

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