Question

The fiscal policy rule of thumb allows that some government budget deficits can be useful in stimulating the economy out of a:

Answer 1

The term that best fits the statement is "recession." The recession is a fiscal policy wherein some governments allow some budget deficits to stimulate the economy of a state. Recession, by definition, is described as a decline in the economic activity which causes a country's fall in its Gross Domestic Product (GDP).