Increasing government spending
Wiki User
∙ 11y agoExpansionary mode is the growth of the economy during a recession
high inflation
The economy has been growing rapidly.
The government will assume an expansionary fiscal policy position.
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.
Expansionary mode is the growth of the economy during a recession
high inflation
The government will assume an expansionary fiscal policy position.
The economy has been growing rapidly.
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.
Expansionary policies
Expansionary fiscal policy is meant to expand the economy by ending a recession earlier, stimulating buying and business success, and decreasing the unemployment rate. This policy is often paired with the lowering of interest rates.
During an expansionary period/phase, an economy grows. In a contractionary period/phase, an economy declines/retracts until it begins to grow again.
When there is continuous industrial action sometimes the country can go on a standstill, in which the economy doesn't grow for that period
to encourage growth and try to stop or prevent a recession
Effect of expansionary fiscal policy which increases money demand and r but money supply reman constant
Governments try to control this cycle to prevent crashes from happening in the economy. They can do this by promoting the growth of businesses during the expansionary phase of the cycle.