In Response to an Adverse Supply Shock,suppose the Fed Implements

Multiple Choice

In response to an adverse supply shock,suppose the Fed implements accommodating monetary policy.Which of the following occurs as a result of the accommodating monetary policy?

A) Aggregate demand shifts to the left,which increases inflation and increases unemployment in the short run.
B) Aggregate demand shifts to the left,which decreases inflation and increases unemployment in the short run.
C) Aggregate demand shifts to the right,which increases inflation and increases unemployment in the short run.
D) Aggregate demand shifts to the right,which increases inflation and decreases unemployment in the short run.