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What Is Counter-Cyclical Fiscal Policy

Question 3

Multiple Choice

What is counter-cyclical fiscal policy?


A) Government taxation policy aimed at a balanced budget.
B) Government spending and taxation policy aimed at a balanced budget.
C) Deliberate adjustments in the level of government spending and taxation in order to close recessionary or inflationary gaps.
D) Deliberate adjustments in the level of government spending and taxation in order to ensure equilibrium GDP.

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