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the government will spend less money than it earns by cutting its spending or raising its taxes
What else can I help you with?
Which of these does not describe a weak economy?
The government will assume a contractionary fiscal policy position.
What describes a contractionary fiscal policy position?
The government spends less money than it earns by cutting its spending or by raising taxes. A+
When does the government assume an expansionary fiscal policy position?
when it is weak
An example of contractionary fiscal policy would be?
A decrease in government spending and increase in taxes
What does Contractionary fiscal policy includes?
Contractionary fiscal policy occurs when government spending is lower than tax. Governments can use a budget surplus to do two things. One main instrument of fiscal policy are changes in the levels and composition of tax.
Which of these does not describe a weak economy?
The government will assume a contractionary fiscal policy position.
The leaders of a small country decide that they need to enact a contractionary fiscal policy Which action is consistent with this fiscal policy?
A reduction in government spending is consistent with a contractionary fiscal policy.
What describes a contractionary fiscal policy position?
The government spends less money than it earns by cutting its spending or by raising taxes. A+
When does the government assume an expansionary fiscal policy position?
when it is weak
An example of contractionary fiscal policy would be?
A decrease in government spending and increase in taxes
What does Contractionary fiscal policy includes?
Contractionary fiscal policy occurs when government spending is lower than tax. Governments can use a budget surplus to do two things. One main instrument of fiscal policy are changes in the levels and composition of tax.
Which one of these does not describe a strong economy?
The government will assume an expansionary fiscal policy position.
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.
What descirbes a contractionary fiscal policy position?
A contractionary fiscal policy position is characterized by a decrease in government spending and/or an increase in taxes. The primary goal is to reduce aggregate demand in the economy, often to combat inflation. By limiting government expenditure and increasing tax revenue, this policy aims to cool down an overheating economy and stabilize prices. Ultimately, it seeks to restore balance when economic growth is perceived as excessive.
Policies reducing levels of economic activity?
contractionary fiscal policy: reducing government expenditure and increasing taxation rate. Contractionary monetary policy: decreasing money supply and increasing interest rates.
Which action is most likely to result in a decrease in money supply?
A contractionary monetary policy or a contractionary fiscal policy.
How will a contractionary fiscal policy affect a budget deficit?
A contractionary fiscal policy, which involves reducing government spending or increasing taxes, typically aims to decrease the budget deficit. By lowering expenditures or raising revenues, the government can reduce its reliance on borrowing, leading to a smaller deficit. However, if the policy significantly slows economic growth, it could also reduce tax revenues, potentially offsetting some of the deficit reduction. Overall, if implemented effectively, contractionary fiscal policy should help improve the budget deficit situation.
