Contractionary fiscal policy involves decreasing government purchases or increasing taxes.

Name: Contractionary fiscal policy involves decreasing government purchases or increasing taxes.
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Contractionary fiscal policy involves decreasing government purchases or increasing taxes in order to reduce aggregate demand and curb inflation. This can lead to decreased spending and economic activity in the short run, but can also help prevent overheating of the economy and inflationary pressures in the long run.

Contractionary Fiscal Policy Involves Decreasing Government Purchases or Increasing Taxes