Question

8 contractionary fiscal policy is used to lower inflation. 9 reducing spending is a type of contractionary fiscal policy.

Explanation:

Since the problem is not fully presented (it seems like a true/false or multiple - choice question without the question prompt like "Which of the following statements is correct/incorrect?"), we can't provide a definite answer. But if we assume it's about determining the truth of these statements:

For statement 8:

Contractionary fiscal policy involves decreasing government spending or increasing taxes. By doing so, the aggregate demand in the economy decreases. Since inflation is often caused by excessive aggregate demand (demand - pull inflation), a decrease in aggregate demand can help to lower the general price level, thus reducing inflation. So this statement is generally true.

For statement 9:

Contractionary fiscal policy tools include reducing government spending (and also increasing taxes). So reducing spending is indeed a type of contractionary fiscal policy. This statement is also generally true.

If you can provide the full question (like what is being asked: to identify true/false, or choose the correct statement among options, etc.), I can give a more precise answer.

Answer:

Since the problem is not fully presented (it seems like a true/false or multiple - choice question without the question prompt like "Which of the following statements is correct/incorrect?"), we can't provide a definite answer. But if we assume it's about determining the truth of these statements:

For statement 8:

Contractionary fiscal policy involves decreasing government spending or increasing taxes. By doing so, the aggregate demand in the economy decreases. Since inflation is often caused by excessive aggregate demand (demand - pull inflation), a decrease in aggregate demand can help to lower the general price level, thus reducing inflation. So this statement is generally true.

For statement 9:

Contractionary fiscal policy tools include reducing government spending (and also increasing taxes). So reducing spending is indeed a type of contractionary fiscal policy. This statement is also generally true.

If you can provide the full question (like what is being asked: to identify true/false, or choose the correct statement among options, etc.), I can give a more precise answer.