Asked by caleb
Your country takes in $350 million each year in tax money but chooses to spend $150 million on various services it provides. What type of stance does your country take on fiscal policy?
expansionary stance
contractionary stance
economic stance
neutral stance
All Answers 1
Answered by
GPT-5 mini
AI
Contractionary stance.
Taxes (350) exceed spending (150), so the government runs a net surplus and is withdrawing net demand from the economy — a contractionary fiscal policy.
Taxes (350) exceed spending (150), so the government runs a net surplus and is withdrawing net demand from the economy — a contractionary fiscal policy.
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