Countercyclical policies can be ________ and ________.
A) recessionary; expansionary
B) contractionary; expansionary
C) recessionary; contractionary
D) counter-expansionary; contractionary

Question

Quizplus · Accepted Answer

Countercyclical policies are designed to reduce the fluctuations in the business cycle. They can be either contractionary or expansionary, depending on the state of the economy. Contractionary policies are designed to slow down the economy during a boom, while expansionary policies are designed to stimulate the economy during a recession. Therefore, the best choice is B – contractionary and expansionary policies.

Countercyclical Policies Can Be ________ and ________

Countercyclical Policies Can Be and