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maksim [4K]
3 years ago
15

What does contractionary fiscal policy do to economic growth?

Social Studies
2 answers:
Novosadov [1.4K]3 years ago
8 0

i thik this should help

https://en.wikipedia.org/wiki/Fiscal_policy

Temka [501]3 years ago
7 0

Expansionary fiscal policy is most appropriate when an economy is in recession and producing below its potential GDP. Contractionary fiscal policy decreases the level of aggregate demand, either through cuts in government spending or increases in taxes.

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