The objective of fiscal policy is to maintain the condition of full employment, economic stability and to stabilize the rate of growth. answer choices When would a Contractionary fiscal policy most likely be used? Use open market operations to buy bonds and securities. Macroeconomics Fiscal Systems DRAFT. For [â¦] Contractionary monetary policy occurs when a nation's central bank raises interest rates and decreases the money supply. Describe the level of inflation experienced in Argentina between 2010 and 2015 compared to that experienced by the United States. Social Studies. The government will spend less money than it earns by cutting its spending or by raising taxes. The long-term impact of inflation can be more damaging to the standard of living than a â¦ 12th grade. Use open market operations to sell bonds and securities Use open â¦ Which of the following describes what the Reserve Bank of Australia would do to pursue an contractionary monetary policy? a) Raising taxes in order to cover a budget deficit. Which of the following best describes a policy which moves the economy to the right and downward along a given short-run Phillips Curve? The second type of fiscal policy is contractionary fiscal policy, which is rarely used. A $30 billion decrease in government spending. 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. B . Which of the following statements best describes the concept of an automatic stabilizer? [1 mark] 1 7 . Which of the following best describes the Clinton-Greenspan policy mix? Which would be the least appropriate action for an Expansionary fiscal policy? It's done to prevent inflation. Contractionary Fiscal Versus Monetary Policy . The diagram below shows the annual rate of inflation in the UK between Its goal is to slow economic growth and stamp out inflation. The government will maintain spending and taxes at their current rate. 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 â¦ B. ... show the use of a contractionary fiscal policy. b) Preventing unions from going on strike. A contractionary fiscal policy is shown as a: leftward shift in the economyâs aggregate demand curve. answer choices It is nondiscretionary fiscal policy that mitigates business cycles by increasing aggregate demand during recessions and decreasing aggregate demand during expansions. FEEDBACK Content attribution QUESTION 12.1 POINT Which of the following best describes contractionary fiscal policy? 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. A. 21 times. Contractionary Fiscal Policy . Which one of the following best describes the action of the accelerator theory of investment? Which of the following is an example of a fiscal policy? C. The government will â¦ An expansionary fiscal policy is shown as a: rightward shift in the economyâs aggregate demand curve. Which of the following represents the most contractionary fiscal policy? Firms decide to invest more following a cut in bank rate . The long-term impact of inflation can damage the standard of living as much as a recession. 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.
2020 which of the following best describes contractionary fiscal policy