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Aggregate Pce Level Output Level there is a(n) (Inationary/ Recessionary) gap. This gap will be eliminated by (Contractionary/ Expansionary) monetary policy which means that Federal

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Aggregate Pce Level Output Level there is a(n) (Inationary/ Recessionary) gap. This gap will be eliminated by (Contractionary/ Expansionary) monetary policy which means that Federal Reserve makes an open-market (Purchase of/ Sell) treasury bills. it shifts (Money Supply curve/ Money Demand Curve) to the (Left/Right). As a result interest rate goes (Up/Down) which shifts (AD/SRAS/LRAS) to the (Left/Right)

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