The Fed's Policies under Volcker In the years 1979 to 1982, under the leadership of Paul Volcker, the Fed adopted a tight money policy to reduce the nation's inflation rate. Based on the aggregate supply - aggregate demand model, what would happen to real GDP in the long run as a result of the Fed's tight money policy under Volcker's leadership? Choose one answer below: Real GDP would end up at its initial level in the long run. O Real GDP would end up lower in the long run. O Real GDP would end up higher in the long run.
