Can a counter-cyclical fiscal policy ever result in a balanced budget?
A)Yes,unless the economy is experiencing a recessionary gap.
B)Yes,if the economy is experiencing a recessionary gap.
C)Yes,if the economy is experiencing a recessionary gap with a budget deficit.
D)Yes,if the economy is experiencing an inflationary gap with a budget deficit.
E)Never.The goal of counter-cyclical fiscal policy is annual deficits.

Question

Quizplus · Accepted Answer

Counter-cyclical fiscal policy aims to stabilize the economy by reducing deficits during inflationary gaps through increased taxes or reduced spending, potentially balancing the budget.

Can a Counter-Cyclical Fiscal Policy Ever Result in a Balanced