All of these are considered expansionary fiscal policies EXCEPT a(n)

Question

Quizplus · Accepted Answer

Reduction in unemployment compensation is a contractionary fiscal policy as it reduces government spending and has the potential to decrease aggregate demand. The other three options listed (decrease in personal taxes, increase in government spending, increase in transfer payments) are all expansionary fiscal policies as they increase government spending and have the potential to increase aggregate demand.

All of These Are Considered Expansionary Fiscal Policies EXCEPT A(n)