Fiscal policy that seeks to counteract business-cycle fluctuations is ________ fiscal policy.

Question

Quizplus · Accepted Answer

Countercyclical fiscal policy is designed to decrease economic fluctuations by decreasing government spending and increasing taxes during economic expansion and increasing government spending and decreasing taxes during the economic contraction phase. This policy is implemented to stabilize the business cycle by decreasing inflation, reducing unemployment rates, and maintain the overall health and growth of the economy as a whole.

Fiscal Policy That Seeks to Counteract Business-Cycle Fluctuations Is ________