answer choices Firms decide to invest more following a cut in bank rate . Its goal is to slow economic growth and stamp out inflation. a. expansionary monetary, contractionary fiscal b. expansionary monetary, expansionary fiscal c. contractionary monetary, contractionary fiscal d. contractionary monetary, expansionary fiscal The tools of contractionary fiscal policy are used in reverse. Contractionary Fiscal Policy . Which one of the following best describes the action of the accelerator theory of investment? For […] A contractionary fiscal policy is shown as a: leftward shift in the economy’s aggregate demand curve. [1 mark] 1 7 . It's done to prevent inflation. An expansionary fiscal policy is shown as a: rightward shift in the economy’s aggregate demand curve. Which of these describes a contractionary fiscal policy position? A. Select the correct answer below: O action that increases the level of aggregate demand, either through increases in government spending or cuts in taxes O action that decreases the level of aggregate demand, either through cuts in government spending or increases in … B . answer choices ... What best describes a recessionary gap? Unformatted text preview: 11.1 Fiscal policy Part 1: Contractionary Fiscal Policy - Study the chart1 below and answer the questions that follow.1. Which of the following describes what the Reserve Bank of Australia would do to pursue an contractionary monetary policy? Which would be the least appropriate action for an Expansionary fiscal policy? The second type of fiscal policy is contractionary fiscal policy, which is rarely used. The diagram below shows the annual rate of inflation in the UK between Which of the following is an example of a fiscal policy? Which of the following best describes a policy which moves the economy to the right and downward along a given short-run Phillips Curve? Use open market operations to buy bonds and securities. ADVERTISEMENTS: Fiscal policy must be designed to be performed in two ways-by expanding investment in public and private enterprises and by diverting resources from socially less desirable to more desirable investment channels. The long-term impact of inflation can be more damaging to the standard of living than a … A . When would a Contractionary fiscal policy most likely be used? Describe the level of inflation experienced in Argentina between 2010 and 2015 compared to that experienced by the United States. ... show the use of a contractionary fiscal policy. The government will maintain spending and taxes at their current rate. The government will spend less money than it earns by cutting its spending or by raising taxes. 21 times. C. The government will … A $30 billion decrease in government spending. a) Raising taxes in order to cover a budget deficit. The objective of fiscal policy is to maintain the condition of full employment, economic stability and to stabilize the rate of growth. b) Preventing unions from going on strike. Contractionary Fiscal Versus Monetary Policy . Use open market operations to sell bonds and securities Use open … 12th grade. FEEDBACK Content attribution QUESTION 12.1 POINT Which of the following best describes contractionary fiscal policy? Social Studies. The long-term impact of inflation can damage the standard of living as much as a recession. Which of the following statements best describes the concept of an automatic stabilizer? B. answer choices It is nondiscretionary fiscal policy that mitigates business cycles by increasing aggregate demand during recessions and decreasing aggregate demand during expansions. Which of the following represents the most contractionary fiscal policy? 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which of the following best describes contractionary fiscal policy

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