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Question: what is the type of monetary policy the federal reserve...

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LRAS SRAS Inflationary Gap AD Outout

what is the type of monetary policy the federal reserve system can undertake to address the inflationary problem? what are the 3 instruments of monetary policy that the federal reserve system uses to close the inflationary gap? explain

how does the management of its money supply enable the federal reserve to manage the economy in order to reduce inflationary pressure? evaluate its effectiveness

what are the impacts of such monetary policy measured on the AD curve, price level and the real GDP? analyze the effect of each tool on these economic variables

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