Question

true or false
8 contractionary fiscal policy is used to lower inflation.
9 reducing spending is a type of contractionary fiscal policy.
section 4: fiscal policy and employment
one major goal of fiscal policy is full employment, which means most pe
job can get one. when the government spends money on building project

Explanation:

Question 8:

Contractionary fiscal policy involves decreasing government spending or increasing taxes to reduce aggregate demand. Inflation occurs when aggregate demand is too high relative to aggregate supply. By reducing aggregate demand, contractionary fiscal policy helps lower inflation. So the statement is true.

Contractionary fiscal policy aims to reduce economic activity (to combat inflation, for example). Reducing government spending is one of the key tools of contractionary fiscal policy as it decreases the amount of money flowing into the economy, thus reducing aggregate demand. So the statement is true.

Answer:

True

Question 9: