Reducing the unemployment rate and expand economy
Question:
What measures the fed should take to reduce the unemployment rate and expand the economy. Remember that the answer has to deal with monetary policy, so don't talk about taxes nor government's spending because these deal with fiscal policy.
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"Unemployment can be caused by a decrease of aggregate demand or a decrease of aggregate supply". In each case, specify the price-level outcomes.
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"An increase in transfers (TR) will not affect the level of real GDP or the real money supply in a fully employed economy."
What measures the fed should take to reduce the unemployment rate and expand the economy.
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