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 short run as a result of the Fed's tight money policy under Volcker's leadership? Choose one answer below: Real GDP would stay at its initial level in the short run. Real GDP would fall in the short run Real GDP would rise in the short run
