If the economy is experiencing an inflationary GDP gap,___ monetary policy might be used to ____ aggregate demand and ____ the overall price level.

A) expansionary;decrease;decrease
B) expansionary;increase;decrease
C) contractionary;decrease;decrease
D) contractionary;decrease;increase
E) contractionary;increase;increase

Inflationary GDP Gap

The excess amount by which the actual gross domestic product (GDP) exceeds the potential GDP, leading to inflation.

Aggregate Demand

The total demand for all goods and services within an economy at a given overall price level and within a specific time frame.

Monetary Policy

The process by which a country's central bank or monetary authority manages its money supply to achieve specific goals such as controlling inflation, maintaining employment, and stabilizing the currency.