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Dewitt Abbott

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2y ago

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What is the anti-inflationary fiscal policy?

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What is contractionary policy?

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 what is one way the U.S. government might use its fiscal policy to slow down the economy?

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.


What amount should be used to shift aggregate demand by fiscal policy when macro equilibrium is above full employment?

by the amount of the Aggregate demand excess. known as the Inflationary gap


What is non monetised deficit?

Effect of expansionary fiscal policy which increases money demand and r but money supply reman constant


Fiscal policy and its objectives?

fiscal policy OBJ. in relation to taxation policy and expenditure policy


What is fiscal policy centered on?

Fiscal policy is a policy centered on ideas and research.


Who controls fiscal policy?

The president and congress together control the fiscal policy.


Who regulate the Fiscal Policy of India?

The president regulates the fiscal policy of India.


Should you increase taxes or cut taxes?

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!


Is instruments of fiscal policy and tools of fiscal policy the same thing?

Yes these are same................


The economic policy that manages the business cycle by changing government spending is called .?

fiscal policy