Question: n' T1. 1 2) The Federal Reserve increases interest rates for a given inflation rate as a policy change depicted as an upward shift in

n' T1. 1

2) The Federal Reserve increases interest rates for a given inflation rate as a policy change depicted as an upward shift in the Monetary policy Curve. Show the effect on the IS and AD curves below, pay particular attention to what is a movement along a curve versus a shift in a curve. Y = GDP = National Y = GDP =

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