Suppose there is a decrease in aggrThe cost of inflation reduction is less if people believe that the central bank will really reduce inflation. a. True b. False egate demand. If the Fed wants to stabilize output it could a. sell bonds. These sales also move the price level closer to its original level. b. buy bonds. However these purchases move the price level farther from its original level. c. sell bonds. However these sales move the price level farther from its original level. d. buy bonds. These purchases also move the price level closer to its original level