Contractionary fiscal policy is so named because it:

A. involves a contraction of the nation's money supply.
B. necessarily reduces the size of government.
C. is aimed at reducing aggregate demand and thus achieving price stability.
D. is expressly designed to expand real GDP.

C. is aimed at reducing aggregate demand and thus achieving price stability.

Economics

You might also like to view...

International trade (a key component of globalization) has been linked to lower prices in numerous studies

Indicate whether the statement is true or false

Economics

A recession is a decline in:

A.  The inflation rate that lasts six months or longer B.  The unemployment rate that lasts six months or longer C.  Real GDP that lasts six months or longer D.  Potential GDP that lasts six months or longer

Economics