If the short-run equilibrium output of the United States exceeds the potential output, the Fed:
a. employs an active monetary policy to close a recessionary gap.
b. employs an active monetary policy to close an expansionary gap.
c. relies on a passive approach to close a recessionary gap.
d. relies on a passive approach to close an expansionary gap
e. employs an expansionary fiscal policy.
b
Economics
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