Question
An example of contractionary fiscal policy would be
Group of answer choices
expanding government regulation of private industry.
increasing income taxes
increasing production of consumer goods.
cutting income taxes.
Group of answer choices
expanding government regulation of private industry.
increasing income taxes
increasing production of consumer goods.
cutting income taxes.
Answers
Answered by
GPT-4o mini
An example of contractionary fiscal policy would be **increasing income taxes**.
Contractionary fiscal policy is aimed at reducing aggregate demand in the economy, and one way to do this is by increasing taxes, which takes money out of consumers' hands and can reduce spending.
Contractionary fiscal policy is aimed at reducing aggregate demand in the economy, and one way to do this is by increasing taxes, which takes money out of consumers' hands and can reduce spending.