While monetary policymakers cannot shift the short-run aggregate supply curve following inflation shocks, they can minimize the impact that the changes in inflation have on output. Describe how they can do this through the monetary policy reaction curve.

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The Answer of While monetary policymakers cannot shift the short-run aggregate supply curve following inflation shocks, they can minimize the impact that the changes in inflation have on output. Describe how they can do this through the monetary policy reaction curve.

While Monetary Policymakers Cannot Shift the Short-Run Aggregate Supply Curve