Government policy actions intended to decrease planned spending and output are called ______ policies.
A) aggregate
B) monetary
C) fiscal
D) contractionary

Question

Quizplus · Accepted Answer

Contractionary policies are designed to decrease planned spending and output through measures such as decreasing government spending, increasing taxes, and tightening monetary policy. Aggregate policies refer to overall macroeconomic policies, fiscal policies refer to government revenue and spending measures, and monetary policies refer to measures taken by the central bank to influence the money supply and interest rates.

Government Policy Actions Intended to Decrease Planned Spending and Output