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If the short-run equilibrium output of the United States exceeds the potential output, the Fed employs an active monetary policy to close a recessionary gap.

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If the short-run equilibrium output of the United States exceeds the potential output, the Fed employs an active monetary policy to close a recessionary gap. employs an active monetary policy to close an expansionary gap. relies on a passive approach to close a recessionary gap. relies on a passive approach to close an expansionary gap. employs an expansionary fiscal policy

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