To Say That Fiscal Policy Is Countercyclical Means That

question 34

Multiple Choice

To say that fiscal policy is countercyclical means that

• A)it is used only during a recession.
• B)cyclical movements in the economy can be offset by fiscal policy.
• C)it is not very effective as a policy tool.
• D)government spending and real GDP are negatively correlated.
• E)it is used only every other year.

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Definitions:

Praxeology

Praxeology is the study of human action and conduct, particularly in the context of economic theories, focusing on the logical implications of human choice and behavior.

Association for Assessment

A professional organization dedicated to promoting standards, research, and best practices in the field of assessment.

Diverse Populations

Groups of individuals that vary significantly in characteristics such as culture, ethnicity, socioeconomic status, or language.

Cultural Differences

The variations in the practices, customs, and behaviors of different societies or cultures.