Contractionary fiscal policy is typically used to:

Name: Contractionary fiscal policy is typically used to:
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Contractionary fiscal policy is designed to decrease aggregate demand, which helps to slow down economic growth and reduce inflation. An overheated economy is one in which resources are stretched thin and inflation is on the rise due to excessive demand. Therefore, contractionary fiscal policy is most commonly used to combat inflationary pressures caused by an overheated economy.

Contractionary Fiscal Policy Is Typically Used To