"They reduce disposable income" explains how contractionary policies can hamper economic growth
<h3>Further explanation
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Disposable income is the amount of money that households have,available for spending and saving after income taxes accounted.
Expansionary fiscal policy is an increase in government expenditures, also a decrease in taxes that causes the government's budget deficit to increase or its budget surplus to decrease. In short, expansionary fiscal policy boosts economic growth by lowering interest rates.
Whereas contractionary fiscal policy is defined as a decrease in government expenditures, also an increase in taxes that causes the government's budget deficit to decrease or its budget surplus to increase. Contractionary money policy is used to combat inflation. In short, contractionary fiscal policy hamper economic growth by increasing interest rates.
Contractionary policy increases the cost of borrowing. It can decreases GDP and dampens inflation, but also leads to reduced disposable income. Another negative side effect is it makes an increase in the unemployment rate. Disposable income itself is the amount of money that households have, available for spending and saving after income taxes accounted.
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<h3>Answer details</h3>
Grade: 9
Subject: social studies
Chapter: hamper economic growth
Keywords: hamper economic growth
Answer:
a. The condition in which the individual is isolated and divorced from his or her society, work, or sense of self.
Explanation:
Alienation -
It refers to the situation of loneliness , where the person is isolated in the society , is referred to as alienation .
The person might be separated from family friends and even work , and hence , becomes depressed and isolated .
The condition is very depressing and frustrating .
Hence , from the question ,
The correct option is a.
The loyalist and patriot was great during the war.
