Course: ECO 110

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Unit 10 Assignment »

Unit 10 Assignment

Unit 10 Assignment

Consider the following graph:

1. What kind of gap is the economy experiencing at point C?

2. What type of monetary policy (expansionary or contractionary) would be appropriate for closing the gap?

3. If the Fed decided to pursue this policy, what type of open-market operations would it conduct?

4. What type of fiscal policy could Congress and the President use?