Countercyclical policies are associated with

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Countercyclical policies are implemented in response to changes in macroeconomic conditions to stabilize the economy. This approach is most closely associated with Keynesian theory, which emphasizes the importance of government intervention in managing the economy through fiscal policies such as government spending and taxation. Classical theory and supply-side theory emphasize the role of free markets and minimal government intervention, while monetarist theory focuses on the importance of controlling the money supply to manage inflation and the business cycle.

Countercyclical Policies Are Associated with