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The figure given below shows the aggregate demand curve and the short-run aggregate supply curve of an economy. The Fed can return the economy depicted by this figure to its potential output in the long run by:
Gymnast
An athlete who performs artistic gymnastics, demonstrating strength, flexibility, balance, and control in various routines.
Dichotomous Thinking Style
A cognitive pattern where situations or individuals are viewed in two categories (e.g., good or bad) without acknowledging the complexity.
Self-evaluations
Processes in which individuals assess their own skills, attributes, and performance, often in comparison to standards or prior performance.
Serotonin
A neurotransmitter in the brain that plays a key role in mood regulation, appetite, digestion, and sleep.
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