Fiscal Policy Designed to Increase Aggregate Demand During Economic Downturns

question 100

Multiple Choice

Fiscal policy designed to increase aggregate demand during economic downturns and decrease aggregate demand during economic booms is called

• A) business cycle fiscal policy.
• B) new classical fiscal policy.
• C) supply-side fiscal policy.
• D) countercyclical fiscal policy.

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Definitions:

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, a crucial indicator of cardiovascular health.

Arteriosclerosis

The thickening, hardening, and loss of elasticity of artery walls, leading to restricted blood flow and increased risk of heart disease.

Ischemic Stroke

A type of stroke caused by a blockage in an artery that reduces or stops blood flow to a part of the brain, leading to tissue damage.

Blood Clot

A mass formed by the coagulation of blood, which can be beneficial in preventing blood loss from injuries but harmful if it blocks blood flow through veins or arteries.