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Reducing government spending, reducing transfer payments, or raising taxes describes which policy?
A. Monetary policyB. Expansionary fiscal policyC. Supply-side fiscal policyD. Contractionary fiscal policy
When government policymakers reduce the level of government spending or increase the level of taxation, they are using:
a) Contractionary fiscal policy.
b) Expansionary fiscal policy.
c) Expansionary monetary policy.
d) Automatic stabilization policy.