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Currently in the expansion phase

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The U.S. economy is currently in the expansion phase. An expansion is a period in which the economy experiences two or more consecutive quarters of positive percent change in real GDP and is often associated with decreasing unemployment rates and increasing inflation rates. Given the current stage, would you recommend the Federal Government or the Federal Reserve Bank undertake expansionary or contractionary fiscal/monetary policy? Explain why? (Must choose between expansionary and contractionary)

Reference no: EM131467350

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