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Which of the following fiscal policy action would cause the economy to contract? a. raise taxes c. decrease the money supply b. increase government expenditures d. balance the budget

Alexa Spicer

in Social studies

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Alexa Spicer on April 16, 2018

the fiscal policy action would cause the economy to contract is to: A. raise taxes The contraction of the economy refer to a decrease in national production as measured in GDP for that year. When you increase taxes, the company would not be able to afford to buy the materials and hire employees. This will lead to a decline in productivity, and led to the contraction of the economy


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