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If the aggregate demand curve shifts rightward following a decrease in the federal funds rate, what ...

vellojo

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If the aggregate demand curve shifts rightward following a decrease in the federal funds rate, what ...

If the aggregate demand curve shifts rightward following a decrease in the federal funds rate, what can be concluded if the short-run aggregate supply curve is rather steep?
A) There will be a significant increase in real GDP with little impact on the price level.
B) There is significant unemployment and slack in the economy.
C) There will be a significant increase in both real GDP and the price level.
D) There will be little increase in real GDP but a significant increase in the price level.

Textbook

Foundations of Macroeconomics

Edition: 8^th

Authors: Bade, Parkin

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Studying economics @ Edinburgh U

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amish

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More solutions for this book are available here

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vellojo Author

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7 years ago

Thank you for this

Comes at the right time too!

Good luck on your exams

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Studying economics @ Edinburgh U

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