Federal Reserve Policy In The 2008-2009 Great Recession

What do you think the Federal Reserve Bank did to the reserve requirement during the Great Recession of 2008–2009?

A well-known economic model called the Phillips Curve (in The Keynesian Perspective) describes the short run tradeoff typically observed between inflation and unemployment. Based on the discussion of expansionary and contractionary monetary policy, explain why one of these variables usually falls when the other rises.

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