How do expansionary policies differ from contractionary policies? A. Expansionary policies seek to reduce the severity of recessions, while contractionary policies seek to slow down the economy when it grows too fast. B. Expansionary policies seek to shift the labor demand curve to the right, while contractionary policies seek to shift it to the left. C. Expansionary policies seek to increase economic growth and increase employment, while contractionary policies seek to reduce the risk of excessive price inflation. D. All of the above. E. Only A and C are correct.

Question

Beatrice Carpenter

Business

25 March, 20:31

How do expansionary policies differ from contractionary policies? A. Expansionary policies seek to reduce the severity of recessions, while contractionary policies seek to slow down the economy when it grows too fast. B. Expansionary policies seek to shift the labor demand curve to the right, while contractionary policies seek to shift it to the left. C. Expansionary policies seek to increase economic growth and increase employment, while contractionary policies seek to reduce the risk of excessive price inflation. D. All of the above. E. Only A and C are correct.

+2

Answers (1)

Know the Answer?

Diet Coke · Answer 1

A. Expansionary policies seek to reduce the severity of recessions, while contractionary policies seek to slow down the economy when it grows too fast.

B. Expansionary policies seek to shift the labor demand curve to the right, while contractionary policies seek to shift it to the left.

C. Expansionary policies seek to increase economic growth and increase employment, while contractionary policies seek to reduce the risk of excessive price inflation.

Answer is D. (All of the above.)