The Combined Efforts of the Fed and the Treasury in Response

question 77

Multiple Choice

The combined efforts of the Fed and the Treasury in response to the financial crisis following the housing market crash caused:

• A) aggregate supply to shift right to its pre-crisis level.
• B) aggregate supply to shift left, but still far below its pre-crisis level.
• C) aggregate demand to shift right to its pre-crisis level.
• D) the opposite reaction, and aggregate supply shifted farther to the left.

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