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please explain every option detailly, thank you~ 7. Which of the following state

ID: 1131831 • Letter: P

Question

please explain every option detailly, thank you~

7. Which of the following statements is true? A) Countercyclical monetary policy slows down the growth rate of an economy B) Countercyclical fiscal policy slows down the growth rate of an economy during C) Countercyclical fiscal policy stimulates the economy during a recession by D) Countercyclical monetary policy stimulates the economy during a recession by during an expansion by shifting the labor demand curve to the left. an expansion by shifting the labor demand curve to the right. shifting the labor demand curve to the left. shifting the labor demand curve to the left.

Explanation / Answer

Ans is A

Countercycical means high growth rate, in continuatuon low growth rate and then again high growth rate and this continues.

When high growth is combined by leftward shift of demand curve, then output decreases and leads to lower growth rate.