Which of the Following Best Expresses the Central Idea of Countercyclical

question 44

Multiple Choice

Which of the following best expresses the central idea of countercyclical fiscal policy?

• A) Planned deficits are experienced during economic booms and planned surpluses during economic recessions.
• B) The balanced-budget approach is the proper criterion for determining annual budget policy.
• C) Actual deficits should equal actual surpluses during a period of deflation.
• D) Deficits are planned during economic recessions, and surpluses are utilized to restrain inflationary booms.

---

Definitions:

Confidential Disclosure Agreement

A legal contract that outlines the information that one or more parties agree to share with each other and the restrictions on its use.

Consortium Agreement

A formal agreement between multiple organizations or institutions to collaborate towards a common goal, often seen in research, educational, or business contexts.

Career Stage Model

A theoretical framework outlining the phases an individual undergoes throughout their career, often marked by stages such as entry, growth, maturity, and decline.

Sabbaticals

Sabbaticals are prolonged breaks, typically from academic positions, allowing for rest, research, travel, or pursuit of personal interests.