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Which if the following is not correct about stabliziation policy in the AD- AS model? A. with reduced consumer confidence and spending. The Fed could
Which if the following is not correct about stabliziation policy in the AD- AS model?
A. with reduced consumer confidence and spending. The Fed could increase the money supply to stabilize employment level
B. Monetary policy always returns prices and output to their original levels
C. Any stabilization policy aims to reduce the impact of economic fluctuations.
D. The Fed could respond to an adverse supply shock by influencing aggreagate demand
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