During Which of the Following Situations Would You Advise for Expansionary

question 49

Multiple Choice

During which of the following situations would you advise for expansionary fiscal policy?

• A) when current output is above full employment output
• B) when the economy is expanding at a rapid pace
• C) when inflation is at 10% per year
• D) when the current unemployment rate is below the natural rate of unemployment
• E) when the current unemployment rate is above the natural rate of unemployment