Countercyclical policy will:
A) offset the size of the annual government budget deficits with increased income.
B) stabilize the size of the annual government budget deficits.
C) increase the size of the ups and downs in the business cycle.
D) reduce the size of the ups and downs in the business cycle.

Question

Quizplus · Accepted Answer

Countercyclical policy aims to reduce the volatility of the business cycle by using fiscal and monetary measures to counteract economic downturns and overheating, thereby stabilizing the economy.

Countercyclical Policy Will