Problem
In the diagram, use aggregate demand and short-run and long-run aggregate supply curves to show an economy at a short-run equilibrium at its potential output of $10 trillion. Illustrate the short-run effects if the Fed unexpectedly pursues an expansionary monetary policy. Then show the long-run effect.
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.