Countercyclical taxing and spending policy is known as ________.

Question

Quizplus · Accepted Answer

Countercyclical taxing and spending policy is a core component of Keynesian economics, which promotes active government intervention in the economy to stabilize business cycles. Fiscal federalism refers to the allocation of government spending and taxing powers between the federal and state governments. Supply-side economics emphasizes reducing taxes and regulations to stimulate economic growth. Central economic planning is a command-and-control approach to economic management, which is generally not practiced in modern economies.

Countercyclical Taxing and Spending Policy Is Known as ________