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4. Using the transmission mechanism for a contractionary monetary policy, explain how it can be used to lower the inflation rate. 5. Using a properly
4. Using the transmission mechanism for a contractionary monetary policy, explain how it can be used to lower the inflation rate. 5. Using a properly labeled AS-AD diagram, show the before and after effects of the policy you described in the previous question. Using this diagram, explain how the policy would succeed in lowering the inflation rate
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