If the U.S. government's budget deficits are increasing aggregate demand, and the economy is producing at a level that is substantially less than potential GDP, then:

Respuesta :

If the U.S. government's budget deficits are increasing aggregate demand, and the economy is producing at a level that is substantially less than potential GDP, then the central bank might react with an expansionary monetary policy.

An economy is the area of ​​production, distribution, trade and consumption of goods and services. Generally, it is defined as a social domain emphasizing practices, discourses, and material expressions related to the production, use, and management of scarce resources.

Economics is defined as the management of community, business, or family financial matters. An example in economics is the US stock market system. There are three main types of economies: free market, command economy, and mixed economy.

Learn more about economy here:https://brainly.com/question/1106682

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