What Tool Is Available to Monetary Policymakers to Shift the Short-Run

question 15

Multiple Choice

What tool is available to monetary policymakers to shift the short-run aggregate supply curve to the left following a positive inflation shock?

• A) A rightward shift of the monetary policy reaction curve
• B) A leftward shift of the monetary policy reaction curve
• C) Open market purchases of government securities
• D) None of the answers given is correct; the actions of monetary policymakers affect the dynamic aggregate demand curve

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