Contractionary Fiscal Policy Is Typically Used to

question 82

Multiple Choice

Contractionary fiscal policy is typically used to

• A) combat inflation stemming from an overheated economy.
• B) combat a recession due to deficient demand.
• C) restore the balance of payments.
• D) balance the federal budget.

---

Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a marketplace, determined by supply and demand dynamics.

Subjective Feel

An individual's personal and emotional response or perception towards something.

Profit-oriented Pricing

A pricing strategy aimed at maximizing profit by considering factors such as production costs, consumer demand, and competitive prices.