when is contractionary policy used? *\nwhen there is inflation\nwhen there is unemployment\nduring a…
when is contractionary policy used? *\nwhen there is inflation\nwhen there is unemployment\nduring a contractionary phase\nsubmit\nthis form was created inside of douglas county school\ngoogle forms
Answer
Brief Explanations:
Contractionary policies, like reducing government spending or increasing interest - rates, aim to decrease aggregate demand. They are used when inflation is high to cool down the economy. Unemployment calls for expansionary policies to boost demand and create jobs. Saying it's used during a contractionary phase is circular.
Answer:
when there is inflation