Contractionary fiscal policy

From CNM Wiki
Revision as of 00:18, 1 June 2020 by Kevmwangi (talk | contribs) (Created page with "Contractionary fiscal policy is when fiscal policy decreases the level of aggregate demand, either through cuts in government spending or increases in taxes. ==Definition...")
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

Contractionary fiscal policy is when fiscal policy decreases the level of aggregate demand, either through cuts in government spending or increases in taxes.

Definition

According to Principles of Economics by Timothy Taylor (3rd edition),

Contractionary fiscal policy. When fiscal policy decreases the level of aggregate demand, either through cuts in government spending or increases in taxes.