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Use the Dynamic Aggregate Demand and Aggregate Supply Model and Start

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Essay

Use the dynamic aggregate demand and aggregate supply model and start with Year 1 in long-run macroeconomic equilibrium.For Year 2,graph aggregate demand,long-run aggregate supply,and short-run aggregate supply such that the condition of the economy will induce the Federal Reserve to conduct a contractionary monetary policy.Briefly explain the condition of the economy and what the Federal Reserve is attempting to do.


Definitions:

Oogenesis

Production of eggs in females by the process of meiosis and maturation.

Sister Chromatids

Identical copies of a chromosome, connected by a centromere, created during DNA replication and present in a cell before it divides.

Homologous Chromosomes

Pairs of chromosomes in a diploid organism that are similar in shape, size, and genetic content, one inherited from each parent, containing the same genes but possibly different alleles.

Crossing-over

Crossing-over is a process during meiosis where homologous chromosomes exchange genetic material, resulting in increased genetic variation in gametes.

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