Countercyclical Fiscal Policy Attempts to

question 59

Multiple Choice

Countercyclical fiscal policy attempts to

• A) smooth out expansions and recessions in the business cycle.
• B) prevent economies from falling into recession.
• C) prevent economies from entering into expansion.
• D) maximize expansions and minimize recessions.
• E) maximize expansions and maximize recessions.

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Definitions:

Less Developed Countries

Nations with low levels of economic resources, industrialization, and Human Development Index ratings compared to other countries.

Economic Development

The progress in economic and social well-being including higher income, improved standards of living, and reduction of poverty.

Military Spending

Government expenditure on the military and defense sector, including salaries, hardware, operations, and maintenance.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, leading to significant advancements in technology, manufacturing, and transportation.