How does the economy return to steady state


Problem

Expansionary monetary policy in Europe: Suppose the European Central Bank decides to stimulate the European economy by reducing interest rates there. Use the AS/AD model to explain how and why this affects the U.S. economy in the short run. How does the economy return to steady state?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: How does the economy return to steady state
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