Price level (GDP price index 2012-100) Pecencial AS 130 GDP 120 110 100 90 AD 165 19.0 193 200 20.3 210 Red GDP (en of 2012 dollars) The economy is at the equilibrium shown as point a in the above figure. To restore the economy to potential GDP, the Fed should in aggregate demand. interest rates, leading to a(n) decrease; decrease

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