Question

A typical ____________________________ fiscal policy allows government to decrease the level of aggregate demand, through increases in taxes.

Answer 1

The fiscal policy allows the government to decrease the level of aggregate demand, through increases in taxes is the Contractionary fiscal policy

See explanation bellow

What is a  Fiscal policy?

Simply put, a fiscal policy can be defined as the various ways in which government regulates the economy by ways in which they spend money and collect taxes.

There are basically three types of fiscal policy and they are

• Neutral policy,
• Expansionary, and
• Contractionary

Learn more about Contractionary Fiscal policy here:

brainly.com/question/6583917

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