If the economy is at short-run equilibrium point b because of a negative supply shock, the Fed could enact an expansionary monetary policy, thus shifting the new equilibrium to point _. As a result of this, the price level would _ and real output would ___.

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06-12-2022
Business

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If the economy is at short-run equilibrium point b because of a negative supply shock, the Fed could enact an expansionary monetary policy, thus shifting the new equilibrium to point _. As a result of this, the price level would _ and real output would ___.

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