which best explains how contractionary policies can hamper economic growth?\n\n- they increase consumer…

Brief Explanations:

Contractionary policies, such as increasing taxes or decreasing government spending, are designed to slow down an economy that is growing too fast or to combat inflation. When the government implements these policies, it effectively removes money from the circular flow of the economy. Specifically, increasing taxes or reducing transfer payments directly decreases the amount of money households have available to spend or save after taxes. This reduction in disposable income leads to lower consumer spending, which decreases aggregate demand and can consequently hamper overall economic growth.

Answer:

They reduce disposable income.