In the above figure, along the section of the demand curve between point a and point b, demand is

Explain how discretionary monetary policy may have brought about the end of the Great Moderation and ushered in the Great Recession

What will be an ideal response?

Supply-side policy to reduce inflation would focus on

A. Decreasing the interest rates to encourage investment. B. Increasing the incentives to produce goods and services. C. Decreasing the money supply. D. Raising marginal tax rates to reduce aggregate demand.