If the economy starting at full-employment output begins to enter into an expansion,one would expect Congress and the president to conduct ________ policy.
A) expansionary fiscal
B) expansionary monetary
C) contractionary fiscal
D) contractionary monetary
E) countercyclical monetary

Question

Quizplus · Accepted Answer

When the economy is expanding beyond full-employment output, Congress and the president would likely conduct contractionary fiscal policy to prevent overheating and control inflation.

If the Economy Starting at Full-Employment Output Begins to Enter