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Amanda Parrish
on Nov 11, 2024

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Given the desire of politicians to get reelected,they might try in the short run to use _____.

A) a contractionary monetary policy
B) an expansionary fiscal policy
C) an expansionary monetary policy
D) tax increases
E) automatic stabilizers to control demand

Expansionary Fiscal Policy

Government policy aimed at stimulating economic growth by increasing government spending, reducing taxes, or both.

Contractionary Monetary Policy

A monetary policy strategy used by central banks to reduce inflation and cool an overheating economy by increasing interest rates and reducing the supply of money.

Politicians

Individuals involved in politics, especially those holding or seeking office in government.

  • Explain how discretionary fiscal policy can shift aggregate demand and supply curves.
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MA
Mohd Afnan AbdullahNov 16, 2024
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