Countercyclical taxing and spending policy is known as

Question

Quizplus · Accepted Answer

Countercyclical taxing and spending policy is a principle of Keynesian economics, which suggests that government intervention can help stabilize the economy during economic downturns. This involves using government spending and taxation policies to boost economic activity during times of recession and to slow down the economy during periods of inflation. Fiscal federalism refers to the distribution of financial powers between different levels of government, while supply-side economics emphasizes the importance of reducing taxes and regulations to stimulate economic growth. Central economic planning involves a centralized authority making decisions about the allocation of resources in an economy, which is different from countercyclical taxing and spending policy.

Countercyclical Taxing and Spending Policy Is Known as