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You are here: Home / Potpourri / Economics 101: Counter-cyclical Fiscal Policy

Economics 101: Counter-cyclical Fiscal Policy

Economics 101: Counter-cyclical Fiscal Policy

[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.

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Filed Under: PotpourriTagged With: #Economics101

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