Using Monetary Policy to Help Eliminate an Inflationary Gap

Using monetary policy to help eliminate an inflationary gap

A) shifts the aggregate supply curve to the right.
B) is ineffective if the short-run aggregate supply curve is very steep.
C) leads to an increase in unemployment, at least temporarily.
D) produces a permanent increase in the price level.
E) is futile unless fiscal policy simultaneously creates a budget surplus.

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