If a Passive Approach to Policy Was Followed,how Would an Expansionary

Multiple Choice

If a passive approach to policy was followed,how would an expansionary gap eventually close?

A) Restrictive fiscal policy would be used.
B) Restrictive monetary policy would be used.
C) Both restrictive fiscal policy and restrictive monetary policy would be used.
D) Inflation would cure the problem because the price level in an expansionary gap is lower than firms and workers had expected.
E) Inflation would cure the problem because the price level in an expansionary gap is higher than firms and workers had expected.