What does countercyclical propositione mean
Answers
Answer:
Movement in a direction opposite to that of a normal or current cycle or trend.
Answer:
The term countercyclical refers to actions taken to offset or dampen the effects of economic cycles. In economics, the countercyclical proposition refers to the idea that during an economic downturn, government spending should increase and taxes should decrease, while during an economic upturn, government spending should decrease and taxes should increase. This is intended to mitigate the effects of economic cycles and stabilize the economy. The countercyclical proposition is often associated with Keynesian economics and is based on the idea that government intervention in the economy can help to smooth out fluctuations and promote long-term growth.