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Fluctuations in aggregate demand with no change in short-run aggregate supply bring fluctuations in real GDP around potential GDP. For instance, starting from full employment, a decrease in aggregate demand decreases the price level and real GDP and creates a recessionary gap.
<h3>What is GDP?</h3>
The market worth of all the finished goods and services that nations produce and sell in a certain time period is measured in dollars by their gross domestic product (GDP). This measurement is frequently reviewed before being regarded as a valid indicator due to its subjective and complicated character.
Gross domestic product, or GDP as it is more commonly called, is one of the most significant. This economic indicator measures the monetary value of goods (including food items, machinery, textiles, and cars) and services (including health care, education, etc.) produced in the nation over a specific time period.
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Answer:
A. If the Fed wants to increase the money supply, it can bonds in open-market operations.
Explanation:
