Suppose the Economy Is Experiencing an Inflationary Gap in the Short

Multiple Choice

Suppose the economy is experiencing an inflationary gap in the short run.The advantage of using a contractionary fiscal policy rather than allowing the economy's natural adjustment process to operate is that

A) it will reduce the upward pressure on the price level that would otherwise occur.
B) if private-sector expenditures increase on their own,the policy will stabilize real GDP.
C) it will shorten what might otherwise be a long recession.
D) it will reduce the downward pressure on the price level that would otherwise occur.
E) it will close the output gap.