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AleksAgata [21]
3 years ago
8

Suppose the economy is in short-run equilibrium above potential GDP, the unemployment rate is very low, and wages and prices are

rising. Using the static AD-AS model, the correct Fed policy to move the economy from the short- run equilibrium back to long-run equilibrium would be
an open market purchase of Treasury securities (bonds).
a decrease in reserve requirements.
an open market sale of Treasury securities (bonds).
a increase in taxes.
Business
1 answer:
Effectus [21]3 years ago
8 0

Answer:

an open market sale of Treasury securities (bonds).

Explanation:

An open market sale will decrease the money supply so aggregate demand decreases and shifts to the left.

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