6 Safari File Edit View History Bookmarks Window Help O I O E]: 0 E E eztomheducationcom C 911 I Search results... MALM 6-drawerdr... Q Amazoneom: Prim... m Let's get productiv... Homepage - PRIN," 0 Question 2 - Quiz -... 5 2.00 million plus 3... H Search Results I 0... Quiz - Expansionary + Contractionary Monetary Policy 0 Saved Help Save & Exit Submit An economy is in long-run equilibrium when a positive demand shock causes demand-pull ination. Describe the policy response of the Federal Reserve. a. A positive demand shock will lead to in the aggregate demand curve. The short-run equilibrium will result in a price level and an level of real GDP. b. In order to control inflation, the Federal Reserve will enact monetary policy. A level of investment demand should be targeted by interest rates in the economy. c. To change interest rates in the appropriate direction, the Federal Reserve should target a money . 'Qhgmi n A@