. At which time period is an economic expansion occurring? O Year 3 O Year 9 Year 1 b. What is the best policy action by the federal government during an economic expansion? O contractionary fiscal policy full-employment fiscal policy O expansionary fiscal policy c. True or false: In order to smooth out the business cycle, fiscal policy should adjust government spending and taxes to reflect the exact difference between actual GDP and full-employment GDP. O True O False

. At which time period is an economic expansion occurring? O Year 3 O Year 9 Year 1 b. What is the best policy action by the federal government during an economic expansion? O contractionary fiscal policy full-employment fiscal policy O expansionary fiscal policy c. True or false: In order to smooth out the business cycle, fiscal policy should adjust government spending and taxes to reflect the exact difference between actual GDP and full-employment GDP. O True O False

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter11: Gross Domestic Product

Section: Chapter Questions

Problem 8SQP

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