A government policy that leads to a decrease in aggregate demand is called:

Name: A government policy that leads to a decrease in aggregate demand is called:
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A contractionary policy is a government policy designed to decrease aggregate demand to control inflation. It may include measures such as increasing taxes, decreasing government spending, or increasing interest rates. It is meant to slow down the economy and reduce spending, leading to lower prices and inflation.

A Government Policy That Leads to a Decrease in Aggregate