drag each tile to the correct box. arrange the steps to show the effects of contractionary fiscal policy…

drag each tile to the correct box. arrange the steps to show the effects of contractionary fiscal policy. inflationary pressure decreases. government increases the tax rate. producers manufacture fewer goods. consumers have less money to spend.

drag each tile to the correct box. arrange the steps to show the effects of contractionary fiscal policy. inflationary pressure decreases. government increases the tax rate. producers manufacture fewer goods. consumers have less money to spend.

Answer

Brief Explanations:

Contractionary fiscal policy starts with the government increasing the tax - rate. This reduces consumers' disposable income, so they have less money to spend. With lower consumer demand, producers manufacture fewer goods. Reduced production and lower demand lead to a decrease in inflationary pressure.

Answer:

  1. Government increases the tax rate.
  2. Consumers have less money to spend.
  3. Producers manufacture fewer goods.
  4. Inflationary pressure decreases.