Question: FOR EACH QUESTION BELOW, I need help determining if the situation described requires the pursuit of expansionary policy or contractionary policy. SELECT THE APPROPRIATE POLICY
FOR EACH QUESTION BELOW, I need help determining if the situation described requires the pursuit of expansionary policy or contractionary policy.
SELECT THE APPROPRIATE POLICY for the situations described!
1. Unemployment is at an all-time low of 1.9%*
a. Expansionary policy should be pursued.
b. Contractionary policy should be pursued.
2. A country is producing at a point inside its production possibilities curve.*
a. Expansionary policy should be pursued.
b. Contractionary policy should be pursued.
3. A country has been producing above potential output for 3 consecutive quarters.*
a. Expansionary policy should be pursued.
b. Contractionary policy should be pursued.
4. A country's unemployment rate is above the natural rate of unemployment.*
a. Expansionary policy should be pursued.
b. Contractionary policy should be pursued.
5. Actual output is below potential output.*
a. Expansionary policy should be pursued.
b. Contractionary policy should be pursued.
6. Price level is falling as unemployment increases.*
a. Expansionary policy should be pursued.
b. Contractionary policy should be pursued.
7. Price level is increasing as GDP grows above potential output.*
a. Expansionary policy should be pursued.
b. Contractionary policy should be pursued.
8. Contraction continues for the ninth month in a row.*
a. Expansionary policy should be pursued.
b. Contractionary policy should be pursued.
9. Record numbers of Americans file for unemployment benefits.*
a. Expansionary policy should be pursued.
b. Contractionary policy should be pursued.
10. Consumer spending continues to fall for the third quarter in a row.*
a. Expansionary policy should be pursued.
b. Contractionary policy should be pursued.
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