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During an economic expansion, the government will typically exercise a to cool down the economy and control inflation
During an economic expansion, the government will typically exercise a to cool down the economy and control inflation. ??? expansionary fiscal policy, such as increasing the government spending and lowering the tax contractionary fiscal policy, such as decreasing the government spending and raising the tax expansionary monetary policy, such as increasing the government spending and lowering the tax contractionary monetary policy, such as decreasing the government spending and raising the tax.
Expert Solution
During the expansion, the economy operates beyond its capacity so that real output increases and inflation rises
To control it, the govt will use contractionary policies such as decrease spending or increase the tax which decreases consumption and aggregate demand so that the inflation falls.
option(B)
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