Question

The purpose of an expansionary monetary policy is to shift the.

Answer 1

The goal of expansionary monetary policy is to push the aggregate demand curve to the right.

What Exactly Is an Expansionary Policy?

Expansionary, or loose, the policy is a type of macroeconomic policy that aims to stimulate economic growth. The expansionary policy can take the form of either monetary or fiscal policy (or a combination of the two). It is part of the overarching policy prescription of Keynesian economics to be used during economic slowdowns and recessions to reduce the negative effects of economic cycles.

The purpose of expansionary policy is to stimulate the economy by increasing demand through monetary and fiscal stimulus. The expansionary policy aims to avoid or mitigate economic downturns and recessions.

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