Question

which of the following best expresses the central idea of countercyclical fiscal policy? group of answer choices planned deficits are experienced during economic booms and planned surpluses during economic recessions. the balanced-budget approach is the proper criterion for determining annual budget policy. actual deficits should equal actual surpluses during a period of deflation. deficits are planned during economic recessions, and surpluses are utilized to restrain inflationary booms.

Answer 1

The central idea of countercyclical fiscal policy is that deficits are planned during economic recessions and surpluses are used to restrain inflationary booms.

Fiscal policy is the process by which the government uses spending and taxation to affect the economy. Fiscal policy is typically used by governments to promote strong and sustainable growth and to reduce poverty.

The primary goal of fiscal policy is to maintain economic stability, full employment, and a stable growth rate. Monetary policy, which includes the banking system, the supply of money in circulation, and interest rate management, is frequently optimized.

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