Question

Arrange the steps to show the effects of contractionary fiscal policy. Tiles Inflationary pressure decreases. Government increases the tax rate. Producers manufacture fewer goods. Consumers have less money to spend. Sequence ↓ ↓ ↓

Answer 1

Government increases the tax rate.
Consumers have less money to spend.
Producers manufacture fewer goods.
Inflationary pressure decreases.

Answer 2

The steps to show the effects of contractionary fiscal policy.

What Contractionary fiscal policy?

Contractionary fiscal policy is a type of fiscal policy in which the government collects more money in tax revenue than it spends

• Government increases the tax rate.

• Consumers have less money to spend.

• Producers manufacture fewer goods.

• Inflationary pressure decreases.

What are examples of contractionary fiscal policy?

When the government uses fiscal policy to decrease the amount of money available to the population, this is called contractionary fiscal policy. Examples of this include increasing taxes and lowering government spending.

Learn more about contractionary fiscal policy here: https://brainly.com/question/9504329

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