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A contractionary fiscal policy refers to government measures to reduce its expenditure in order to close the inflationary gap. The government reduces the money in supply by effecting tax increases.
During an inflationary period, the U.S. government might use contractionary fiscal policy to slow down the economy by reducing government spending or increasing taxes. By cutting spending on public programs or raising taxes, disposable income for consumers decreases, leading to lower demand for goods and services. This reduction in demand can help alleviate inflationary pressures, stabilizing prices in the economy.
Effect of expansionary fiscal policy which increases money demand and r but money supply reman constant
fiscal policy OBJ. in relation to taxation policy and expenditure policy
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A contractionary fiscal policy refers to government measures to reduce its expenditure in order to close the inflationary gap. The government reduces the money in supply by effecting tax increases.
During an inflationary period, the U.S. government might use contractionary fiscal policy to slow down the economy by reducing government spending or increasing taxes. By cutting spending on public programs or raising taxes, disposable income for consumers decreases, leading to lower demand for goods and services. This reduction in demand can help alleviate inflationary pressures, stabilizing prices in the economy.
by the amount of the Aggregate demand excess. known as the Inflationary gap
Effect of expansionary fiscal policy which increases money demand and r but money supply reman constant
fiscal policy OBJ. in relation to taxation policy and expenditure policy
Fiscal policy is a policy centered on ideas and research.
The president and congress together control the fiscal policy.
The president regulates the fiscal policy of India.
This is a politically charged subject, so this is highly debatable. But, I will tell you it is generally more helpful to cut taxes in a recession and raise taxes in an inflationary period.The reason you want to cut taxes in a recession(or just stick with an expansionary fiscal policy) is to increase Aggregate Demand is gain a state of growth.You would want to raise taxes in an inflationary period(or just have a contradictory fiscal policy) is to decrease inflation which is probably caused by too much demand. China is a great example!
Yes these are same................
fiscal policy