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The slow growth that can result from a contractionary policy is a positive effect because it can decrease inflation.
What is a contractionary policy?
A contractionary policy are policy steps taken by the government of a country or its Central bank to reduce the money supply in the economy. When money supply is reduced, inflation is also reduced.
An example of a contractionary policy is when the government reduces its spending or increases taxes.
To learn more about contractionary policy, please check: https://brainly.com/question/9504329
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