Gordon believes that the expansion which began in 1982 did so because of the
A)expansionary monetary policy which was pursued.
B)Reagan tax cuts,the passage of the Economic Recovery Act in 1981.
C)increases in consumer and business firm optimism concerning future business conditions.
D)A and B are both correct.

Question

Quizplus · Accepted Answer

Both options A and B are correct. The expansionary monetary policy pursued by the Federal Reserve, combined with the Reagan tax cuts and the passage of the Economic Recovery Act in 1981, helped to stimulate economic growth and increase consumer and business firm optimism concerning future business conditions.

Gordon Believes That the Expansion Which Began in 1982 Did