When a Central Bank Attempts to Stop a Constant Inflation,it

question 35

Multiple Choice

When a central bank attempts to stop a constant inflation,it tries to remove the inflationary gap by

• A)shifting the AS curve upward.
• B)shifting the AS curve downward.
• C)increasing the rightward shift of the AD curve.
• D)stopping the rightward shift of the AD curve.
• E)taking no action and allowing the market to correct itself.

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