Monetary authorities in a country say that there have been no recent negative supply shocks.The economy in this country is currently experiencing high inflation and its productive capacity cannot be increased much.Explain how monetary policy could work to address this scenario.Are there any negative consequences of your recommended policy?

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The Answer of Monetary authorities in a country say that there have been no recent negative supply shocks.The economy in this country is currently experiencing high inflation and its productive capacity cannot be increased much.Explain how monetary policy could work to address this scenario.Are there any negative consequences of your recommended policy?

Monetary Authorities in a Country Say That There Have Been