Multiple Choice
What tool is available to monetary policymakers to shift the short-run aggregate supply curve to the left following a positive inflation shock?
A) A rightward shift of the monetary policy reaction curve
B) A leftward shift of the monetary policy reaction curve
C) Open market purchases of government securities
D) None of the answers given is correct; the actions of monetary policymakers affect the dynamic aggregate demand curve
Correct Answer:
Verified
Correct Answer:
Verified
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