Question

If the Federal Reserve is late to recognize a recession and implements an expansionary policy too​ late, the result could be an increase in inflation during the beginning of the next phase. Even though the goal had been to reduce the severity of the​ recession, the poor timing caused another​ problem: inflation. This is an example of what type of​ policy?

A. Procyclical policy
B. Countercyclical policy
C. Tight policy
D. Fiscal policy

Answer 1

A. Procyclical policy.

Step-by-step explanation:

Procyclical policy is basically is a government approach to increase goverment spending and reduces taxes while government is going through economic expansion.