Expansionary mode is the growth of the economy during a recession
is a policy that have no demand
Expansionary Monetary Policy is adopted by the monetary authorities to increase the money supply of an economy. If money supply is increasing, and central bank adopts an expansionary monetary policy, it would result in inflationary pressures.
increase gvt exp
expansionary monetary policy increases money supply by lowering interest rates
An expansionary gap is a negative output gap, which occurs when actual output is higher than potential output.
expansionary output gap has occured.
Assume certeris paribus, an expansionary gap is where real GDP is above the full employment, and a contractionary gap is where real GDP is below the full employment.
Expansionary mode is the growth of the economy during a recession
to encourage growth and try to stop or prevent a recession
When gap size is equal to wavelength
When gap size is equal to wavelength
The fed
Assuming that the aggregate demand curve does not move, the only way for the gap to be closed is by a shift in aggregate supply. These gaps cause a change in inflation expectations, moving the AS curve left (exp) or right (rec) back to long term equilibrium and changing the inflation rate.
is a policy that have no demand
Expansionary Monetary Policy is adopted by the monetary authorities to increase the money supply of an economy. If money supply is increasing, and central bank adopts an expansionary monetary policy, it would result in inflationary pressures.
increase gvt exp