Explain how the Federal Reserve plays a central role in determining the slope of the aggregate demand

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Explain how the Federal Reserve plays a central role in determining the slope of the aggregate demand curve. For example, if a lower price level leads inflation to be below the Fed’s target rate, how will the Fed likely react, and how will its actions eventually impact the quantity of goods and services people want to buy?

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Principles Of Economics

ISBN: 9781319330156,9781319419769

2nd Edition

Authors: Betsey Stevenson, Justin Wolfers

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