Put yourself in the position of a policymaker and complete the following.

What would you do in the following scenarios? Think of the idea of stabilizing the economy
Answer either Expansionary policy, Contractionary policy, or do nothing and let the economy self-correct.

1) AD-driven recession with highly flexible prices

2) AS-driven recession with the loss of GDP as the main concern

3) AS-driven recession with inflation as the main concern

4) AD-driven recession with very sticky prices

5) AD-driven EXPANSION with inflation and a too-fast increase in GDP as the concern.

6) AS-driven EXPANSION.

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As a responsible policymaker aiming to stabilize the economyheres how I would approach each scenario 1 ADdriven recession with highly flexible prices ... View the full answer