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Business, 16.03.2020 20:08 adanamador8807

Suppose the economy is in equilibrium in the first period at point (A). In the second period, the economy reaches point (B). We would expect the federal government to pursue what type of policy in order to move AD2 to AD2 policy and reach equilibrium (point C) in the second period?
A. Expansionary monetary policy. B. Contractionary fiscal policy. C. Contractionary monetary policy. D. Expansionary fiscal policy.

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