A counter-cyclical fiscal policy tries to set the government budget such that Question 13 options: there are fiscal expansions during recessions and fiscal contractions during booms. when output is above potential, the budget is in a surplus. when output is below potential, the budget is in a deficit. the budget helps to reduce swings in the business cycle. All of the aboveAlthough Canada's debt to GDP ration is lower than most other G7 countries, the deficit as a percent of GDP is much higher than most other G7 countries. Question 14 options: True False