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mahalagang impormasyon tungkol sa contractionary fiscal policy

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Contractionary fiscal policy is when the government either cuts spending or raises taxes. It gets its name from the way it contracts the economy. It reduces the amount of money available for businesses and consumers to spend.

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Contractionary policy is used in times of economic prosperity because it: Slows inflation. ... To slow inflation, governments may enact contractionary fiscal policy in order to decrease the money supply and aggregate demand, which will lead to decreased output and lower price levels

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