An economy is producing at a level of output that is equal to the full$-$employment level of output. Prices of a fundamental resource, such as oil, increase significantly. What would be the best monetary policy?

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a

A stimulative policy

b

A restrictive policy

c

A stimulative policy followed by a restrictive policy

d

A restrictive policy followed by a stimulative policy

e

There is no obviously correct policy, unless you can specify your goals.