Question: Answer it correctly please. I will rate accordingly with multiple votes. Explain your choice.Answer only if 100% correct.Ty-ped answer only. Question 2 2 pts Suppose

Answer it correctly please. I will rate accordingly with multiple votes. Explain your choice.Answer only if 100% correct.Ty-ped answer only.

Answer it correctly please. I will rate accordingly with multiple votes. Explain

Question 2 2 pts Suppose that there are substantial lags between the Central Bank making a decision to raise the interest rate, and the impacts on actual Aggregate Demand (AD). Suppose also that there is a current inflationary gap of $1,200. If the Central Bank wants to close this inflationary gap and stabilize Real GDP, which of the following should it do? O Raise the interest rate such that AD shifts left by EXACTLY $1,200. O Raise the interest rate such that AD shifts left by LESS than $1,200. O Raise the interest rate such that AD shifts left by MORE than $1,200

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