Answer: expansionary monetary policy
Explanation:
Recession occurs when economic activities slowdown. In a recessionary gap, the actual gross domestic product of the economy will be less than the potential gross domestic product of the said economy.
In such scenario, the expansionary monetary policy will be used because it will bring about economic growth. Expansionary monetary policy is when there is a rise in the supply of money in the economy. Also, the interest rates are reduced and there is an increase in demand.
