Question: Suppose a decrease in consumer confidence caused the AD to shift left and persistent low consumer confidence lead to a recession. To move the economy

Suppose a decrease in consumer confidence caused the AD to shift left and persistent low consumer confidence lead to a recession. To move the economy back to its potential output and target inflation rate. The best course of action is

Question

25

options:

Do nothing

Shift AD to the left

Shift AS to the right

Shift AD to the right

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