A fiscal policy in which the government attempts to offset any change in aggregate expenditures that would create a business cycle is called a:
A)supply-side policy.
B)regulatory policy.
C)countercyclical fiscal policy.
D)laissez-faire policy.

Question

Quizplus · Accepted Answer

Countercyclical fiscal policy involves government actions to counteract business cycle fluctuations with the aim of smoothing out the peaks and troughs in the economy. This can include increasing government spending or decreasing taxes during a recession, and the opposite during an expansion, to stabilize economic output.

A Fiscal Policy in Which the Government Attempts to Offset