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policymakers who control monetary and fiscal policy and want to offset the effects on output of an economic contraction caused by a shift in aggregate supply could use policy to shift a. aggregate demand to the right. b. aggregate demand to the left. c. aggregate supply to the right. d. aggregate supply to the left.

Respuesta :

In the short term, governments may concentrate on macroeconomic stabilization, such as increasing spending or lowering taxes to boost a struggling economy or reducing spending or increasing taxes to combat rising inflation or assist in reducing external vulnerabilities.

Who is in charge of fiscal and monetary policy?

The Federal Open Market Committee (FOMC) is the body in charge of making monetary policy within the Federal Reserve System. The Federal Open Market Committee (FOMC) meets eight times a year to review economic and financial developments and determine the appropriate monetary policy stance.

Monetary policy has the power to influence aggregate demand. The aggregate-demand curve will eventually shift to the right as a result of an increase in the money supply. The aggregate-demand curve will eventually shift to the left as a result of a decrease in the money supply.

Learn more about monetary policy here:

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