Use the following to answer question 177:
Figure: Short-Run and Long-Run Effects of Monetary Policy 
-(Figure: Short-Run and Long-Run Effects of Monetary Policy) Look at the figure Short-Run and Long-Run Effects of Monetary Policy. If the economy is initially at E2 and the central bank makes no change in its monetary policy:
A) AD2 will shift to the right, increasing the existing inflationary gap.
B) AD2 will shift to the left, closing the inflationary gap.
C) SRAS1 will eventually shift to the left, closing the existing inflationary gap but raising the aggregate price level.
D) SRAS2 will immediately shift to the right, increasing the existing inflationary gap.
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