What is meant by contractionary fiscal policy
16 Dec 2019 Table Of Contents. Discretionary Fiscal Policy Definition; Contractionary Discretionary Fiscal Policy; Expansionary Discretionary Fiscal Policy 5 Jul 2011 As it is usually defined fiscal policy is the use of public spending and taxes to surplus) indicates that the fiscal stance is contractionary. First of all, it is important to understand what a fiscal policy really is. This is a tool used by the government to influence the aggregate demand of the economy