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Which of the following is an example of Contractionary Fiscal Policy?
  • a)
    Increased unemployment benefits during a recession
  • b)
    Tax cuts for businesses to stimulate the economy
  • c)
    Raising taxes on individuals to reduce disposable income
  • d)
    Increased government spending on infrastructure to boost the economy
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Which of the following is an example of Contractionary Fiscal Policy?a...
Contractionary Fiscal Policy aims to moderate economic growth by either curtailing government spending or increasing taxes. Raising taxes on individuals is an example, as it reduces disposable income and curbs consumer spending.
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Which of the following is an example of Contractionary Fiscal Policy?a)Increased unemployment benefits during a recessionb)Tax cuts for businesses to stimulate the economyc)Raising taxes on individuals to reduce disposable incomed)Increased government spending on infrastructure to boost the economyCorrect answer is option 'C'. Can you explain this answer?
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Which of the following is an example of Contractionary Fiscal Policy?a)Increased unemployment benefits during a recessionb)Tax cuts for businesses to stimulate the economyc)Raising taxes on individuals to reduce disposable incomed)Increased government spending on infrastructure to boost the economyCorrect answer is option 'C'. Can you explain this answer? for UPPSC (UP) 2025 is part of UPPSC (UP) preparation. The Question and answers have been prepared according to the UPPSC (UP) exam syllabus. Information about Which of the following is an example of Contractionary Fiscal Policy?a)Increased unemployment benefits during a recessionb)Tax cuts for businesses to stimulate the economyc)Raising taxes on individuals to reduce disposable incomed)Increased government spending on infrastructure to boost the economyCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPPSC (UP) 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is an example of Contractionary Fiscal Policy?a)Increased unemployment benefits during a recessionb)Tax cuts for businesses to stimulate the economyc)Raising taxes on individuals to reduce disposable incomed)Increased government spending on infrastructure to boost the economyCorrect answer is option 'C'. Can you explain this answer?.
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