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If you liked that, you'd love this: An economy is facing the inflationary gap. To eliminate the gap, should the central bank use expansionary or
If you liked that, you'd love this: An economy is facing the inflationary gap. To eliminate the gap, should the central bank use expansionary or contractionary monetary policy? How will the interest rate, investment spending, consumer spending, real GDP, and the aggregate price level change as monetary policy closes the inflationary gap? Show in a diagram how this works
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