Fiscal policy that seeks to counteract business-cycle fluctuations is:

Question

Quizplus · Accepted Answer

Countercyclical fiscal policy is the best choice as it refers to government policies designed to reduce the severity of business cycles. When the economy experiences a downturn, countercyclical policies (such as increased government spending and tax cuts) aim to stimulate aggregate demand and economic growth. When the economy is experiencing inflationary pressures, countercyclical policies (such as decreased government spending and tax increases) aim to reduce aggregate demand and stabilize prices.

Fiscal Policy That Seeks to Counteract Business-Cycle Fluctuations Is