When output is above the full employment level of real gdp, the federal reserve banks should:.

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14-04-2022
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When output is above the full employment level of real gdp, the federal reserve banks should:.

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ewomazinoade ewomazinoade · Answer 1 · 2022-04-19T13:15:28+02:00

When output is above the full employment level of real gdp, the federal reserve banks should decrease the amount of dollars in circulation to keep inflation under control.

What should be done when output is above the full employment level of real gdp?

When output is above the full employment level of real gdp, it means that the economy is operating above its capacity. This means that inflation would be higher than expected. The correct policy step is to carry out contractionary monetary policies.

To learn more about monterary policies, please check: https://brainly.com/question/25716528