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Evaluation for contractionary fiscal policy???

Does anyone know any good evaluations for contractionary fiscal policies?? i know loads for expansionary but cant seem to think of any for contractionary
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safahJ
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Original post by maxcovel39
Does anyone know any good evaluations for contractionary fiscal policies?? i know loads for expansionary but cant seem to think of any for contractionary


contractionary fiscal policy= is designed to reduce AD through inc in taxation and reduction in government spending

whether it is effective in reducing AD:

depends upon the initial level of economic activity, if economy is operating close to yfe, concerns about reduction in growth and u/e will not hold significance

depends upon state of government finances, if government is running a budget deficit then contractionary fiscal policy is more viable

it's actually very difficult to think of evaluation. econplusdal says use the same eval points for expansionary just switch it around

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