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As shown in the figure, what is the basic problem that limited the Federal Reserve's ability to move the economy back to full employment after
As shown in the figure, what is the basic problem that limited the Federal Reserve's ability to move the economy back to full employment after the Great Recession had begun? A graph shows an aggregate demand curve, A D 2007, short-run aggregate supply curve, S R A S 2007, and a long-run aggregate supply curve, L R A S 2007, that intersect at real G D P 16 trillion dollars. A leftward shift in aggregate demand to curve A D 2008 coincides with a leftward shift in short-run aggregate supply to S R A S 2008, and results in a leftward shift in long-run aggregate supply to L R A S 2008 at a real G D P of 15 trillion dollars. At real G D P 16 trillion dollars the rate of unemployment is 5% and at real G D P 15 trillion dollars the rate of unemployment is 8%. Click or tap a choice to answer the question. the shift in price level the shift in the unemployment rate the shift in aggregate demand the shift in long-run aggregate supply
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