Governments are said to fine-tune the economy when they attempt to use fiscal policy to:

Question

Quizplus · Accepted Answer

Governments fine-tune the economy by using fiscal policy (adjustments in government spending and taxation) to attempt to keep the economy at its target or potential level of income, aiming for stable growth, low inflation, and reduced unemployment. This involves managing aggregate demand to match the economy's productive capacity.

Governments Are Said to Fine-Tune the Economy When They Attempt