Based on the graph of GDP growth, the U.S. government would be most likely to introduce expansionary monetary policy during periods of low or negative GDP growth, such as in the years 2008-2009 and 2020-2021. In these periods, the government might increase the money supply, lower interest rates, and/or decrease reserve requirements for banks, which would encourage borrowing, lending, and investment. The goal of expansionary monetary policy is to stimulate economic activity and increase GDP growth, by increasing consumer and business spending, and creating jobs.
On the other hand, the U.S. government would be most likely to introduce contractionary monetary policy during periods of high GDP growth and rising inflation, such as in the years 1997-2000 and 2004-2006. In these periods, the government might decrease the money supply, raise interest rates, and/or increase reserve requirements for banks, which would discourage borrowing, lending, and investment. The goal of contractionary monetary policy is to slow down economic activity and reduce inflationary pressures, by decreasing consumer and business spending, and controlling inflation.
Overall, monetary policy works by influencing the supply and demand for money and credit in the economy, which affects interest rates, inflation, and GDP growth. By adjusting monetary policy, the government can attempt to stabilize the economy, promote growth, and control inflation.