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Which of the following is an example of stabilization policy? A. The Fed reacting to an adverse supply shock by lowering aggregate demand B. The
Which of the following is an example of stabilization policy?
A. The Fed reacting to an adverse supply shock by lowering aggregate demand
B. The fed reacting to an adverse supply shock by raising aggregate demand
C. The Fed does not react to an adverse supply shock and lets the economy takes its own course to stabilize output
D. The Fed prints money to finance spending to combat higher inflation
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