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The Figure Given Below Depicts Short-Run Equilibrium in an Aggregate

question 48

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The figure given below depicts short-run equilibrium in an aggregate demand-aggregate supply model. Which of the following policies will allow the Fed to close the GDP gap in the long run?
The figure given below depicts short-run equilibrium in an aggregate demand-aggregate supply model. Which of the following policies will allow the Fed to close the GDP gap in the long run?   A)  A decrease in government spending B)  A decrease in taxes C)  A sale of U.S. government bonds D)  An increase the discount rate E)  An increase in the required reserve ratio


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