Refer to the graphs, in which the numbers in parentheses near the AD 1, AD 2, and AD 3 labels indicate the level of investment spending associated with each curve. All figures are in billions. The economy is at equilibrium at the intersection of the aggregate supply curve and aggregate demand curve AD 3. What policy should the Fed pursue to achieve a noninflationary, full-employment level of real GDP

Respuesta :

The policy that the Fed can pursue in order to be able to achieve a noninflationary, full-employment level of real GDP is an increase in the money supply.

Full employment GDP simply means a hypothetical GDP level that an economy would be able to achieve if it reported full employment. It's the gross domestic product that corresponds to zero unemployment.

Based on the complete information, in order to achieve a noninflationary, full-employment level of real GDP, it's vital to increase the money supply.

Read related link on:

https://brainly.com/question/25669466

ACCESS MORE
ACCESS MORE
ACCESS MORE
ACCESS MORE