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a . An economy is facing a recessionary gap. To eliminate the gap, the central bank should pursue monetary policy. b . Determine how the

.

An economy is facing a recessionary gap. To eliminate the gap, the central bank should pursue monetary policy.

.

Determine how the type of monetary policy that you selected will change each of the following

expansionary

contractionary

Answer Bank

real GDP

consumer spending

aggregate price level

interest rate

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