Use the Following to Answer Questions 50-54

question 39

Multiple Choice

Use the following to answer questions 50-54:
Figure: Monetary Policy and Demand Shocks
-(Figure: Monetary Policy and Demand Shocks) Refer to the figure.In the figure,assume the initial real growth rate of the economy is 3% when a negative aggregate demand shock shifts the AD curve from AD₁ to AD₃.As a result of the Fed's policy response,the AD curve shifts to AD₂ in the short run.Which of the following is TRUE about the Fed's policy response?

• A) The Fed responded too little to the shock.
• B) The Fed responded too much to the shock.
• C) The Fed provided just the right amount of response to the shock.
• D) The Fed was too fast in responding to the shock.

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Definitions:

Respect And Values

Principles and behaviors that acknowledge the worth and dignity of individuals and groups, often foundational to healthy relationships and societies.

Diversity

The inclusion and representation of different types of people (such as different races, cultures, genders, etc.) in a group or organization.

Inclusion

The practice of ensuring individuals or groups are valued, respected, and supported fully in an environment, regardless of their backgrounds or characteristics.

Multiple Culturalism

An approach or policy that recognizes and values a diversity of cultures within a society, encouraging the maintenance and expression of cultural identity.