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Consider the above situation when the economy has been hit by a negative (temporary) supply shock and as a result the economy is currently at

Consider the above situation when the economy has been hit by a negative (temporary) supply shock and as a result the economy is currently at a short-run equilibrium. What can the Federal Reserve do to achieve output stability? Using the AS-AD model and in words illustrate how the described action of the Federal Reserve impacts the economy in terms of inflation and output.

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