Define Contractionary fiScal Policy. When Should It Be Used

question 103

Essay

Define contractionary fiscal policy. When should it be used?

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Definitions:

Unrealized Gains

Profits that have been achieved on paper from an investment but have not yet been realized through a transaction.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in the net income or loss for the period.

Fixed Assets

Long-term tangible assets used in operations, such as buildings and machinery, not expected to be converted to cash within a year.

Consolidated Balance Sheet

A financial statement that aggregates the assets, liabilities, and equity of a parent company and its subsidiaries.