Say that the U.S. is in a typical expansion with a bit of inflation. Then, fiscal policy changes and… Show more Say that the U.S. is in a typical expansion with a bit of inflation. Then, fiscal policy changes and T rises a bit. Which of the following is most likely? 1) Less Inflation 2) Less growth 3) Recession 4) Deflation 5) A larger increase in prices 6) A larger increase in real GDP • Show less