Agovernment can try to minimize business cycles by: a. promoting growth during the contractionary phase of the business cycle. c. disregarding new technologies during the contractionary phase of the business cycle. b. promoting growth during the expansionary phase of the business cycle. d. increasing the money supply during the expansionary phase of the business cycle.

The correct answer is A.

Business cycles comprise both expansionary phases of economic growth and contractionary phases of recession.

In order to minimize the size of the oscillations that ocurr since the peak is reached in the growth period until the trough arrives during the recession period, the goverment can use the fiscal and monetary policy mecanisms, but in the opposite direction than the one of the growth trend. This means that a contractionary policy (decrease money suppply) should be used during the expansionary phase, while an expansionary policy (increase public spending), needs to be applied in a recession.

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