Contractionary fiscal policy is so named because it involves a contraction of the nation's money supply.
This refers to the policy or situation where the government of a country cuts spending or reduces taxes with the aim of lowering asset prices.
Hence, we can note that this policy has to do with the contraction of the nation's money supply, it is aptly named as contractionary fiscal policy based on the intervention of the government.
Read more about fiscal policy here:
https://brainly.com/question/6583917
