Question: D Question 2 15 pts We often say that responding to a negative AD shock is the easiest scenario for the Fed to respond to.

 D Question 2 15 pts We often say that responding to

D Question 2 15 pts We often say that responding to a negative AD shock is the easiest scenario for the Fed to respond to. However, even the response to a negative AD shock might be difficult, and it's often impossible for the Fed to increase AD the exact amount necessary to offset the shock. Why is that? In other words, why is it easy for the Fed to overshoot or undershoot their stimulus? Explain. Edit View Insert Format Tools Table 12pt V Paragraph BIUA & V T 2 V

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