This image is a graph with \"time\" along the x-axis and \"real GDP\" along the

Question

This image is a graph with "time" along the x-axis and "real GDP" along the y-axis. A horizontal wavy line extends across the graph. The highest point on the line has a label "B." The downward slope has a label "A." The lowest point on the line has a label "C." The upward slope has a label "D."

Use this image to answer the following question. When the economy is operating at point C, the Federal Reserve is most likely to follow
Answer

expansionary fiscal policy.

contractionary fiscal policy.

expansionary monetary policy.

contractionary monetary policy.

Explanation / Answer

contractionary fiscal policy.

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