"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
they help see that not one branch has too much power
Answer:
increase wages
Explanation:
A labor union is also known by the name of trade union which represents the organization of workers who work for the economic and social emancipation of the workers at their workplace. They are responsible for the working conditions which includes timings of work, wages, safety, health benefits and other condition related to the workplace. They are made against the exploitation of workers by profit-making forces.
1) Having access to goods not produced in the country: for example, an individual might want to have access to a book in a foreign language, but this book is not printed in their country - so they can import it
2) The Individual has a bigger choice and can have access to more satisfying goods - for example importing chocolate from foreign countries means that there will be more choice and that the individuals can explore their preferences.
