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:

Catharsis

A process of releasing and thereby providing relief from strong or repressed emotions.

Emotional Release

The process of expressing or letting go of pent-up emotions, which can be therapeutic and promote well-being.

Disturbance

An interruption of a peaceful or calm state, or an event that causes turmoil or disruption.

Inhibition

The process of restraining or decreasing the rate of a reaction, often used in the context of neural processes and psychological responses.