Question

Whenever significant expansionary policies are implemented and left in place for at least half a year or more, the likely result is:_____.

Answer 1

Answer:

It starts effecting price level - inflationary pressure in economy.

Explanation:

Expansionary policies are aimed at increasing Aggregate Demand, by Fiscal or monetary approach.

Fiscal expansion policy include increasing government public expenditure, reducing government tax revenue. Monetary Expansion policy aim include credit expansion - from decreased LRR, decreased bank rate, decreased marginal requirement etc

Significant expansion policy left for more than half an year, start exerting inflationary pressure on the economy price level.

Answer 2

Answer:

high inflation or reduced government spending

Explanation: