1. During the Great Recession of 2007-2009, GDP was at times contracting at a 6% rate. In a recession:

expansionary fiscal policy is countercyclical.

contractionary fiscal policy is countercyclical.

it is necessary for policymakers to wait for the economy to self-correct.

attempts by the government to move the economy closer to full employment are bound to be unsuccessful according to Keynesian economics.

2. Changes in taxes or spending that are the result of deliberate changes in government policy are called:

nondiscretionary fiscal policy.

discretionary fiscal policy.

public financial policy.

discretionary monetary policy.