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In our model of aggregate supply and aggregate demand, how does expansionary monetary policy work to increase real GDP and the price level? Sort the
In our model of aggregate supply and aggregate demand, how does expansionary monetary policy work to increase real GDP and the price level? Sort the following in the order in which they occur. Drag and drop options into correct order and submit. For keyboard navigation...SHOW MORE Press space or enter to grab Banks have excess reserves and lend more causing the money supply to increase. Press space or enter to grab Firms begin to increase production and some raise prices Press space or enter to grab The federal funds rate falls Press space or enter to grab The Federal Reserve buys bonds Press space or enter to grab A new equilibrium is reached GDP is higher and the price level is higher Press space or enter to grab The aggregate quantity demanded exceeds aggregate quantity supplied Press space or enter to grab Planned investment spending rises as interest rates fall Press space or enter to grab Inventories begin to fall Press space or enter to grab Aggregate demand increases
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