When the economy suffers a negative supply shock and the central bank responds by changing the autonomous component of monetary policy to keep inflation at the target inflation rate, then Show answer choices short-run aggregate supply will shift back down and to the left because output is below potential. aggregate output drops further after the tightening monetary policy. aggregate output is stabilized. Question 12 0/2.5 Which of the following is a reason why quantitative easing alone will not necessarily be stimulative? Show answer choices The asset purchase program involves only the purchase of long-term government securities. Banks may just add to their holdings instead of making loans. The asset purchase program involves only the purchase of short-term government securities. (D) Most of the resulting increase in the monetary base just flows into holdings of excess reserves