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If the economy is at potential output and the Fed increases the money supply, in the SHORT run the aggregate demand will likely:
Reassurance
A communication technique used to alleviate fear or anxiety, often by providing comfort or information to dispel concerns.
PTSD
Post-Traumatic Stress Disorder, a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, severe anxiety, and uncontrollable thoughts about the event.
DSM-5
The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a manual published by the American Psychiatric Association that provides a common language and standard criteria for the classification of mental disorders.
Traumatic Stressor
Any event or situation that causes intense psychological stress or trauma, potentially leading to mental health disorders like PTSD.
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