Question

What is the goal of contractionary fiscal policy? hurry please

Answer 1

Answer:

The purpose of contractionary fiscal policy is to slow growth to a healthy economic level. That's between 2% to 3% a year.1

 An economy that grows more than 3% creates four negative consequences.

it creates inflation

Explanation:

Answer 2

Answer:

The goal of contractionary fiscal policy is to reduce inflation. Therefore the tools would be an decrease in government spending and/or an increase in taxes. This would shift the AD curve to the left decreasing inflation, but it may also cause some unemployment.

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