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The Federal Reserve has a stated goal of maintaining an inflation rate of 2%. However, the current inflation rate in the US is 7.9%, which

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The Federal Reserve has a stated goal of maintaining an inflation rate of 2%. However, the current inflation rate in the US is 7.9%, which is the highest it's been in 40 years. Recently the Fed has taken action to bring the inflation rate down. Read both part a and part b of this question before you begin to answer part a. a. (5) Identify and describe the specific action the Federal Reserve should take to help bring down the high inflation rate. b. (15) Carefully and completely explain how the action you described in part a. would help to reduce the inflation rate. Your explanation should incorporate Aggregate Demand Aggregate Supply analysis. That is, how will the Fed's action affect Aggregate Demand and/or Aggregate Supply? How does that shift bring about a lower inflation rate? Be sure that your explanation is complete and fully explains what-causes-what by placing events in the proper sequence

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