For each of the following situations a. through c., answer by stating whether expansionary or contractionary fiscal policy would be more appropriate:

a. The economy is experiencing a recession, and equilibrium in the AD/AS model is occurring at a quantity of output below potential GDP. b. An extremely high level of aggregate demand has generated inflationary increases in the price level and created an equilibrium in the AD/AS model where real output is above potential GDP. c. Unemployment has risen in the economy and aggregate demand is well below the full-employment level of output.