Business, 13.06.2020 16:57 skywil8981

What can we expect from the Federal Reserve Bank if it seeks to move the economy in the direction of long-run macroeconomic equilibrium? A. The Fed will pursue an expansionaryan expansionary fiscal policy. B. The Fed will pursue an expansionaryan expansionary monetary policy. Your answer is correct. C. The Fed will pursue a contractionarya contractionary fiscal policy. D. The Fed will pursue a contractionarya contractionary monetary policy. If the Fed's policy is successful, what is the effect on the following indicators? Actual real GDP: does not change Potential real GDP: increases Price level: increases Unemployment: decreases

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What can we expect from the Federal Reserve Bank if it seeks to move the economy in the direction of...

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