Contractionary policies are fiscal policies, like lower spending and higher taxes, that reduce economic growth.
These policies are typically used to combat inflation by decreasing the overall demand in the economy.
fiscal policies used to increase aggregate demand, thereby increasing the growth of economic output
bills that set money aside for specific spending
fiscal policies, like lower spending and higher taxes, that reduce economic growth
fiscal policies, like higher spending and tax cuts, that encourage economic growth
1 answer
Contractionary policies are fiscal policies, like lower spending and higher taxes, that reduce economic growth.
These policies are typically used to combat inflation by decreasing the overall demand in the economy.