Respuesta :
Expansion; Fed is trying to encourage expansion phase of the business cycle.
More about the business cycle:
When the Gross Domestic Product (GDP) fluctuates around its long-term natural growth rate, it is said to be in a business cycle. It shows how an economy changes through time, expanding and contracting in terms of economic activity.
Positive economic indicators like employment, income, output, wages, profits, demand, and supply of products and services are rising during this stage of expansion.
The economy then reaches a saturation point, or peak. The recession is the stage that follows the peak phase. The economy eventually reaches the trough which is the negative saturation point for an economy.
Learn more about business cycle here:
https://brainly.com/question/14855711
#SPJ1
