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(Solved): Chairman Jerome Powell of the Federal Reserve announced on 3r November 2021t o begin reducing the pa ...



Chairman Jerome Powell of the Federal Reserve announced on 3r November 2021t o begin reducing the pace of asset purchases". That meansreducing the growth rate of the money supply. Discuss (with the aid of the AD-AS diagram) what this kind of monetary policy will do to the economy, and how the economy will go back to full employment equilibrium.



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