If the Parliament passes legislation to raise taxes to control demand-pull inflation, then this would be an example of a(n):  A. Political business cycle B. Expansionary fiscal policy C. Contractionary fiscal policy D. Nondiscretionary fiscal policy

Fiscal policy is a tool to stabilize fluctuations in the economy by making adjustments in government spending and tax rates. Fiscal policies can be classified into two types; contractionary and expansionary.

Contractionary fiscal policy includes increasing taxes and reducing government spending to reduce inflation. Expansionary fiscal policy involves reducing taxes and increasing government spending to boost the economy.

If the Parliament passes legislation to raise taxes to control demand-pull inflation, then this would be an example of a(n): A. Political business cycle B. Expansionary fiscal policy C. Contractionary fiscal policy D. Nondiscretionary fiscal policy

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If the Parliament passes legislation to raise taxes to control demand-pull inflation, then this would be an example of a(n):  A. Political business cycle B. Expansionary fiscal policy C. Contractionary fiscal policy D. Nondiscretionary fiscal policy