Which of the Following Best Expresses the Central Idea of Countercyclical

Multiple Choice

Which of the following best expresses the central idea of countercyclical fiscal policy?

A) Planned deficits are experienced during economic booms and planned surpluses during economic recessions.
B) The balanced-budget approach is the proper criterion for determining annual budget policy.
C) Actual deficits should equal actual surpluses during a period of deflation.
D) Deficits are planned during economic recessions, and surpluses are utilized to restrain inflationary booms.