Contractionary or restrictive fiscal policy is so named because it:
A) involves a contraction of the nation's money supply.
B) necessarily reduces the size of government.
C) is aimed at reducing aggregate expenditure and thus the inflationary gap.
D) is expressly designed to expand real GDP.
Correct Answer:
Verified
Q36: Expansionary fiscal policy:
A) decreases aggregate expenditure and
Q37: Tightening fiscal policy during a recession is
Q38: Suppose that the government cuts taxes and
Q39: Budget policy is government policy on:
A) spending
Q40: To the economist, the term fiscal policy
Q42: The direction of discretionary fiscal policy can
Q43: The structural budget balance shows what the
Q44: The "structural budget balance" refers to:
A) the
Q45: The structural budget balance tells us:
A) that
Q46: A structural budget deficit is also called
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