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Business, 30.04.2021 04:30 lesliealvarado1022

In 2007, the Federal Reserve lowered interest rates in order to stimulate the economy. Which of the following is a possible explanation as to why this policy failed to restore the economy to long- run equilibrium a. since monetary policy shifts the aggregate demand curve, it was not able to deal with the aggregate supply issues that led to the Great Recession, b. the cut in interest rates was accompanied by very loose fiscal policy c. the cut in interest rates shifted the long run aggregate supply curve too far. d. since monetary policy shifts the aggregate supply curve, it was not able to deal with aggregate demand issues that led to the Great Recession.

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