Question

How do expansionary policies differ from contractionary​ policies? A. Expansionary policies seek to reduce the severity of​ recessions, while contractionary policies seek to slow down the economy when it grows too fast. B. Expansionary policies seek to shift the labor demand curve to the​ right, while contractionary policies seek to shift it to the left. C. Expansionary policies seek to increase economic growth and increase​ employment, while contractionary policies seek to reduce the risk of excessive price inflation. D. All of the above. E. Only A and C are correct.

Answer 1

A. Expansionary policies seek to reduce the severity of​ recessions, while contractionary policies seek to slow down the economy when it grows too fast.

B. Expansionary policies seek to shift the labor demand curve to the​ right, while contractionary policies seek to shift it to the left.

C. Expansionary policies seek to increase economic growth and increase​ employment, while contractionary policies seek to reduce the risk of excessive price inflation.

Answer is D. ( All of the above.)