The late 1960's era Johnson 10% tax surcharge designed to curb inflation is an example of

Question

Quizplus · Accepted Answer

The late 1960's era Johnson 10% tax surcharge was a deliberate and discretionary decision taken by the government to curb inflation, which makes it a contractionary fiscal policy. It is not nondiscretionary because it was a conscious decision taken by the government, nor is it expansionary because it aimed to reduce inflation, not stimulate economic growth. It is not monetary policy because monetary policy refers to decisions made by the central bank to regulate the money supply and interest rates, whereas the tax surcharge was a fiscal policy.

The Late 1960's Era Johnson 10% Tax Surcharge Designed to Curb