Which of the following is a consequence of contractionary fiscal policy?

Contractionary fiscal policy involves measures taken by the government to reduce spending or increase taxes to slow down an overheating economy. When such measures are implemented, the overall effect generally leads to a reduction in aggregate demand. This, in turn, can cause slower economic growth because higher taxes or decreased government spending means less money circulating in the economy for consumers and businesses to use.

As for the other options, contractionary fiscal policy typically does not lead to increased consumer spending, as higher taxes or reduced government expenditure means consumers have less disposable income. Additionally, it is generally aimed at controlling inflation, so it would not lead to higher inflation rates. Lastly, lower unemployment is also unlikely, as slower economic growth can lead to fewer job opportunities and potentially higher unemployment rates in the long run. Therefore, the most accurate consequence of contractionary fiscal policy is slower economic growth.