Using Monetary Policy to Help Close a Recessionary Gap

Using monetary policy to help close a recessionary gap

A) shifts the aggregate supply curve to the left.
B) is ineffective if the short-run aggregate supply curve is close to horizontal.
C) requires that people not spend excess money balances to ensure falling wages and prices.
D) leads to increased unemployment unless price levels rise.
E) has inflationary consequences if the short-run aggregate supply curve is very steep.

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