Decreases in net taxes, increases in the Z factors, and increases in government spending are contractionary policies.

Name: Decreases in net taxes, increases in the Z factors, and increases in government spending are contractionary policies.
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Question

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Decreases in net taxes and increases in government spending are expansionary policies, while increases in the Z factors do not have a clear effect on the economy and can be either expansionary or contractionary depending on the specific factors being increased.

Decreases in Net Taxes, Increases in the Z Factors, and Increases