Contractionist policies are a set of measures taken by the government, contractionary policies are measures to reduce disposable income to contain the economic growth of a certain sector, causing damage to the economy, but to know how they affect the economy, we must know this....
What is Contractionist Policy?
Contractionist Policy is a set of measures taken by the Government, with the aim of reducing the high growth of the economic market, in addition to controlling inflation and currency circulation.
Contractionist Policy is a subgroup of some other policies that make up Economic Policy as a whole, such as Fiscal, Exchange and Monetary Policies, for example.
With this information, we can say that contractionary policies are measures to reduce disposable income to curb economic growth in a given sector, causing damage to the economy.
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