If the Short-Run Equilibrium Output of the United States Exceeds

Multiple Choice

If the short-run equilibrium output of the United States exceeds the potential output,the Fed:

A) employs an active monetary policy to close a recessionary gap.
B) employs an active monetary policy to close an expansionary gap.
C) relies on a passive approach to close a recessionary gap.
D) relies on a passive approach to close an expansionary gap.
E) employs an expansionary fiscal policy.