"They reduce disposable income" explains how contractionary policies can hamper economic growth
<h3>Further explanation
</h3>
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:
b. Because they do not receive additional compensation through company benefits, contingent IT workers usually make less that full-time employees doing equivalent work.
Explanation:
- contingent workers are a group of people who do not have a clear definition of long-term employment with a company. His work is mainly based on short-term engagements.
- contingent workers do not receive salaries. Instead, they receive payment or commission for the work they do. They are not responsible for benefits such as contract employees and are responsible for their own taxes.
- so answer is b. Because they do not receive additional compensation through company benefits, contingent IT workers usually make less that full-time employees doing equivalent work.
Articles one and three are the ones that seem to apply:
<span>Men are born and remain free and equal in rights. Social distinctions may be founded only upon the general good.<span>The principle of all sovereignty resides essentially in the nation. No body nor individual may exercise any authority which does not proceed directly from the nation.</span></span>
