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In counteracting a negative supply shock, the fed could achieve by using monetary
In counteracting a negative supply shock, the fed could achieve by using monetary policy.
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robertcoe426
4,9(55 marks)
In counteracting a negative supply shock, the fed could achieve price stability by using expansionary monetary policy. Price stability is the point at which prices are stable in the economy. Expansionary monetary policy is when a central bank uses its tools to stimulate the economy. They are able to increase monetary supply, lower interest rates and increase the demand.
lovely222
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