Table 7-1 Table 7-1 Shows the Aggregate Demand and Short-Run

Table 7-1
Table 7-1 shows the aggregate demand and short-run aggregate supply curves for an economy. The potential level of output is $7.6 trillion.
-Refer to Table 7-1. If policymakers choose to close the gap by using stabilization policy, they should use

A) contractionary fiscal or monetary policies.
B) expansionary fiscal or monetary policies.
C) a combination of contractionary fiscal and expansionary monetary policies.
D) a combination of expansionary fiscal and contractionary monetary policies.

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