Question

ad & as model hwk
the hypothetical infiscal policy
if congress and thewhich would mean
increasing government spending or cutting taxes
decreasing government spending or increasing taxes
increasing the money supply
decreasing the money supply
2027 if the federal government does not
price level
120.3
122.7
ry should use an expansionary fiscal policy

Explanation:

To solve this, we analyze fiscal policy:

Fiscal policy involves government spending and taxation. Expansionary fiscal policy (to boost the economy) uses increasing government spending or cutting taxes to increase aggregate demand. Monetary policy (money supply changes) is managed by central banks, not Congress (which handles fiscal policy). So the correct option relates to fiscal expansion.

Answer:

increasing government spending or cutting taxes