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.
Deficits are planned during economic recessions, and surpluses are utilized to restrain inflationary booms.
D.
Deficits are planned during inflationary booms, and surpluses are utilized to restrain economic recessions.
Exam No：AP Macroeconomics Problem Set 3 Year：2024 Question No：APMacroeconomics2024AP0113
Answer:
C
Knowledge points:
5.1 Fiscal and Monetary Policy Actions in the Short Run
Solution:
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