Countercyclical Fiscal Policy Can

question 22

Multiple Choice

Countercyclical fiscal policy can

• A) only be employed in reaction to an existing recession
• B) only be employed in reaction to an existing boom
• C) be employed to prevent a potential recession or boom or in reaction to an existing recession or boom
• D) only be employed to prevent a potential boom
• E) only be employed to prevent a potential recession.

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Definitions:

Southern Italy

The region of Italy encompassing the southern part of the Italian Peninsula, known for its distinct historical, cultural, and geographical characteristics.

Industrialized

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods, involving large-scale industry and infrastructure development.

Treaty of Prague

An agreement concluded in 1866 after the Austro-Prussian War, leading to the dissolution of the German Confederation and the establishment of the North German Confederation.