Question: During the Great Depression, a commitment to the Gold Standard required the Federal Reserve to raise interest rates to attract more gold into its reserves.

During the Great Depression, a commitment to the Gold Standard required the Federal Reserve to raise interest rates to attract more gold into its reserves. Using the AS/AD model, what impact did this have?

Group of answer choices

LRAS & SRAS shifts right

LRAS & SRAS shifts left

AD shifts left

SRAS shifts right; LRAS does not shift

SRAS shifts left; LRAS does not shift

AD shifts right

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