Suppose the economy is producing above potential GDP and the Federal Reserve implements the appropriate change in monetary policy, but not until after the economy has started to slow down on its own. In this situation there is a real danger that
A) the Fed's expansionary policy will result in too large of an increase in GDP. B) the Fed's contractionary policy will result in too large of a decrease in GDP. C) the Fed's contractionary policy will result in too small of a decrease in GDP. D) the Fed's expansionary policy will result in too small of an increase in GDP.
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