Contractionary fiscal policy consists of a(n):

a.

increase in government purchases, an increase in taxes, and/or an increase in transfer payments.

b.

decrease in government purchases, a decrease in taxes, and/or a decrease in transfer payments.

c.

decrease in government purchases, an increase in taxes, and/or a decrease in transfer payments

d.

increase in government purchases, a decrease in taxes, and/or an increase in transfer payments.

e.

decrease in government purchases, a decrease in open market operations, and/or an increase in the discount rate

A decrease in government purchases, other things constant, would:

a.

increase unemployment in an economy in the short run

b.

increase the price level in an economy in the short run

c.

decrease unemployment in an economy in the short run.

d.

increase the real gross domestic product in an economy in the short run.

e.

decrease the market interest rate in an economy in the short run.