Question

Consider the following statements:

1.In case of pro cyclical policies, the government takes measures which will act against the direction of the economic cycle.
2.In case of the counter cyclical policies, the government takes measures which will reinforce the phase in the cycle.

• A. 1 only
• B. 2 only
• C. Both 1 and 2
• D. None of the Above

Answer 1

The correct option is D None of the Above

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> In case of pro cyclical policies, the government takes measures which will reinforce this phase in the cycle.

In case of counter cyclical policies, the government takes measures which are against the phase in the cycle.