Tax cuts as part of a countercyclical policy have
A)in most cases been able to offset the effects of a recession.
B)always been successful.
C)been able at best to speed up the recovery from recession.
D)rarely had any positive long-run effect.
E)never been used.

Question

Quizplus · Accepted Answer

Tax cuts as a part of a countercyclical policy may be able to speed up the recovery from a recession by increasing disposable income and stimulating consumption, but they are not a panacea for economic difficulties and rarely have a positive long-run effect.

Tax Cuts as Part of a Countercyclical Policy Have