A type of economic policy in which many economic decisions are left to individuals and businesses but also in which the federal government plays a role in using its power to shape those economic decisions is best described as a

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The description best fits a mixed economy, which combines elements of both a free market economy (leaving many economic decisions to individuals and businesses) and government intervention (using its power to shape those decisions). This is different from a laissez-faire economy (which advocates for minimal government intervention) and a command-and-control economy (in which the government has complete control over economic decisions). A socialist economy would imply even greater government control over the means of production and distribution, which is not necessarily implied by the given description.

A Type of Economic Policy in Which Many Economic Decisions