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Look at the following Figure. If the economy is at point E, there is a(n) _____ ( Inflationary/ Recessionary) gap. Thisgap will be eliminated by_____

Look at the following Figure. If the economy is at point E, there is a(n) _____ (Inflationary/ Recessionary)gap. Thisgap will be eliminated by_____(Contractionary/ Expansionary)monetary policy which means that Federal Reserve makes an open-market_____(Purchase of/ Sell)treasury bills.it shifts _____(Money Supply curve/ Money Demand Curve)to the _____(Left/Right). As a result interest rate goes_____(Up/Down)which shifts _____(AD/SRAS/LRAS)to the _____(Left/Right)

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