What Is True Regarding Counter-Cyclical Fiscal Policy

question 84

Multiple Choice

What is true regarding counter-cyclical fiscal policy?

• A)It reinforces the business cycle.
• B)It aims to balance the economy not the budget.
• C)It has been described as "enhancing the prevailing winds."
• D)It has no connection with the business cycle.
• E)It can eliminate the business cycle.

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Definitions:

Electricity

A form of energy resulting from the existence of charged particles such as electrons or protons, either statically as an accumulation of charge or dynamically as a current.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive, usually represented graphically as the area above the supply curve and below the market price.

Consumer Surplus

The differential between the amount envisioned by consumers to pay for a good or service and the actual amount paid.

Perfectly Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product.