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Basic Question 1 of 12

The primary purpose of a contractionary fiscal policy is to ______

A. reduce inflationary pressure.
B. reduce unemployment.
C. increase equilibrium income.

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Learning Outcome Statements

describe tools of fiscal policy, including their advantages and disadvantages;

explain the implementation of fiscal policy and difficulties of implementation;

determine whether a fiscal policy is expansionary or contractionary;

CFA® 2024 Level I Curriculum, Volume 2, Module 12.