Which of the following statements best describes the idea of the accommodation of an inflation shock by policymakers?

Which of the following statements best describes the idea of the accommodation of an inflation shock by policymakers? Policymakers take no deliberate [or discretionary} policy actions in response to an unfyourable inflation shock. Policymakers take no deliberate for discretionary} policy actions in response to a fayourable inflation shock. Policymakers use discretionary policy to eliminate a contractionary gap in response to an unfavourable inflation shock. Policymakers use discretionary policy to eliminate a contractionary gap in response to an exogenous fall in the AD curye. Policymakers use discretionary policy to eliminate an expansionary gap in response to an increase in the level of potential output