Asked by Cooper Lumsden on May 17, 2024

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The term "fine-tuning the economy" implies:

A) making government economic policy more "people oriented".
B) using government policies to adjust the economy and promote economic stability.
C) solving microeconomic problems such as externalities and losing sight of the big picture.
D) placing fewer regulations on the private sector,thereby eliminating the need for government intervention.
E) designing policies based exclusively on leading economic indicators.

Fine-Tuning

The process of making minor adjustments to monetary and fiscal policy to stabilize the economy, aiming to maintain steady growth and low inflation.

Economic Stability

Economic stability refers to a condition where an economy experiences steady growth, low inflation, and minimal unemployment, thereby reducing uncertainty in economic planning.

Government Policies

A course or principle of action adopted or proposed by a government, political party, or ruling authority.

  • Comprehend the fundamentals of Keynesian economics and its strategy for addressing economic downturns via fiscal policy measures.
  • Understand the influence of economic policies on the stability of prices and outputs in an economy.
  • Ascertain the factors leading to economic oscillations and the significance of government actions in managing these oscillations.
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CV
Christian VazquezMay 20, 2024
Final Answer :
B
Explanation :
"Fine-tuning the economy" implies using government policies to adjust and stabilize the economy, suggesting that choice B is the best answer. The other options (A, C, D, and E) do not accurately reflect the concept of fine-tuning the economy.