Scenario 2: The economy of Northhurst is currently experiencing GDP growth of over 7% with inflation rates of 4% and unemployment of 1%. Jaelyn finds that everything she wants to buy costs more money but her wages haven't increased. She is worried about being able to afford everything she needs. Part I: The Business Cycle and the Problem g. What stage of the business cycle is the economy currently in? Expansion h. What is the current problem in the economy? Population Does it need money in or out of the economy? IN 1. j. What type of monetary policy is that? k. What type of fiscal policy is that? 1. Doing any of these will the money supply and availability of credit.

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