What challenges did New France face in North America?

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.