What Is the Result of Expansionary Fiscal and Monetary Policies

question 43

Multiple Choice

What is the result of expansionary fiscal and monetary policies if an economy is suffering stagflation?

• A)Unemployment may be cured but at the cost of higher inflation.
• B)Inflation may be cured but at the cost of higher unemployment.
• C)It will increase the levels of both unemployment and inflation.
• D)It will decrease the levels of both unemployment and inflation.

---

Definitions:

Spontaneous Remission

The unexpected improvement or cure of a disease or condition that occurs without medical treatment.

Lymphocytes

A type of white blood cell that is part of the immune system, helping the body fight infection and disease.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, affecting attention and responding actions in the brain.

Serotonin

A neurotransmitter that contributes to feelings of well-being and happiness, along with regulating mood, appetite, and sleep.