Expansionary monetary or fiscal policies

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The year 2014 closed with the unemployment rate just below 6 percent, real GDP growing at roughly 2.5 percent, inflation below 2 percent, and the federal budget showing a deficit under 3 percent of GDP.

A. Give one or more arguments for engaging in expansionary monetary or fiscal policies under these circumstances.

B. Give one or more arguments for engaging in contractionary monetary or fiscal policies under these circumstances.

C. Which arguments do you find more persuasive?

Reference no: EM131379204

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