A policy that is designed to move an economy in a direction that is the opposite of its direction in the business cycle is referred to as a _____ policy.
A) corrective
B) counterbalancing
C) pro-stability
D) countercyclical

Question

Quizplus · Accepted Answer

Countercyclical policies are designed to counteract the business cycle's fluctuations, aiming to stabilize the economy by working against the cycle's phases (e.g., stimulating the economy during a recession and cooling it during an expansion).

A Policy That Is Designed to Move an Economy in a Direction