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Question: time running attempt due feb 1 a 58 minutes 37...

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Time Running: Attempt due: Feb 1 a 58 Minutes, 37 S MS1 MS2 MID Qi Q2 Q. Quantity

MD Qi Q4 There are multiple answers to this question, select all of the following statements that are consistent with the graph above The Federal Reserve would most likely follow this policy during a recession. a The Federal Reserve has decreased the money supply. D The Federal Reserve has increased the Discount Rate. B The Y-axis measures the nominal interest rates D There will be a decrease of investment spending a The Federal Open Market Committee has purchased bonds on the open market. D A decrease of personal income taxes could have caused the shift of MS2 to MS1. Nominal interest rates have increased.

② Question14 ② Questions Question 6 D Question 5 13 pts Time Running: Hide Attempt due: Feb 1 at 11 57 Minutes, 42 Seca LRAS PL SRAS PL1 AD1 Y1 Yf RGDP Refer to the graph above:

AD1 Y1 Yf RGDP Refer to the graph above: . Assume the economy is in short-run equilibrium at Point A ·The Federal Funds Rate is 4%. The Natural Rate of Unemployment is 5%. a. Describe the state of the economy at Point A. Include a description of GDP, Inflation, and the Natural Rate of Unemployment. Write a full paragraph. b. Write a full paragraph describing what specifically the Federal Reserve could do, how it affects the money supply, the key interest rate, and how this action will move the economy toward full employment. Use the data in the graph to explain which curve is primarily affected and how it changes output, price levels and unemployment. Paragraph

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