In what scenario would Congress likely opt for expansionary policies?

Congress is likely to opt for expansionary policies during periods of low economic growth. Expansionary policies, which include measures such as increasing government spending or lowering taxes, are designed to stimulate the economy by boosting demand. When economic growth is low, it often indicates that businesses are not investing, consumer spending is down, and overall economic activity is sluggish.

In such scenarios, Congress may implement expansionary measures to encourage borrowing and spending, increase job creation, and revitalize economic activity. This is especially important in combating recessions or periods of stagnation, as it can create a more conducive environment for growth and recovery.

Other scenarios, such as high inflation rates or stable economic conditions, typically call for different policy responses, like contractionary measures to stabilize prices or maintain economic equilibrium. Similarly, high employment rates usually suggest a robust economy where expansionary policies may not be necessary, as the economy is already growing or functioning well.