Expansionary policies are policies designed to
A) increase the level of real GDP.
B) reduce the level of real GDP.
C) decrease government spending.
D) reduce the federal deficit.

Question

Quizplus · Accepted Answer

Expansionary policies are aimed at boosting aggregate demand in the economy, which leads to an increase in the level of real GDP. These policies can include increasing government spending, cutting taxes, and lowering interest rates. The goal is to stimulate economic growth and reduce unemployment.

Expansionary Policies Are Policies Designed to