Question

00

Real GDP
A
с
Use this image to answer the following question. When the economy is operating at point C, the U.S. Congress is most likely to follow (5 points)
O expansionary fiscal policy
O contractionary fiscal policy
O expansionary monetary policy
contractionary monetary policy

Answer 1

its A im taking the test and its defenetly a

Step-by-step explanation:

Answer 2

O expansionary fiscal policy

Step-by-step explanation:

Point C represents a recession. During a recession, the economy experiences slow or negative growth. The unemployment rate is way above the recommended levels. The economy requires stimulation to accelerate growth and create job opportunities.

Congress controls the fiscal policies in the US. Fiscal policy is about adjusting taxation and government spending. Expansionary fiscal policies accelerate economic growth in a country. These policies target to income the amount of money in circulation. Reductions of taxes and an increase in government are expansionary.