Fine-tuning is most consistent with which school of economic thought
A)Keynesian or Modern Keynesian economics.
B)Monetarism or new classical economics.
C)Supply-side economics or new classical economics.
D)Marxism.

Question

Quizplus · Accepted Answer

Fine-tuning involves the use of macroeconomic policies such as fiscal and monetary policies to stabilize the economy and maintain full employment, which is consistent with Keynesian or Modern Keynesian economics. Monetarism and new classical economics emphasize the importance of maintaining a stable money supply and allowing markets to self-correct. Supply-side economics focuses on incentivizing production and increasing efficiency through policies such as tax cuts and deregulation. Marxism emphasizes the role of the state in controlling the means of production and distribution, which is not relevant to the concept of fine-tuning.

Fine-Tuning Is Most Consistent with Which School of Economic Thought