Question 2 (0.4 points) Why would policymakers target a reduction in GDP growth by using contractionary policies? i) The Fed fights inflation by increasing interest rates, which in turn causes a reduction in employment as a by-product. ii) Excessive optimistic sentiments about the economy can result in an unsustainable economic expansion. Question 2 options:

i) is true and ii) is false

i) and ii) are both false

i) and ii) are both true

i) is false and ii) is true