![Economics 101: Counter-cyclical Fiscal Policy](https://i0.wp.com/sterlingterrell.net/wp-content/uploads/2018/01/1-30.png?fit=687%2C457&ssl=1)
[This is part of the series: The Complete Guide To Economics 101.]
What is a counter-cyclical fiscal policy?
A Counter-cyclical Fiscal Policy is where the government attempts to offset negative changes in aggregate expenditures.
The textbook fiscal policy answer to a slowing economy is to lower taxes and increase government spending.
Asking if fiscal policy even works to begin with – is another story.