According to Keynesian economics, what does fine-tuning the economy mean?
A) making government economic policy more "people oriented"
B) using government policies to adjust the economy and promote economic stability
C) tinkering with 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

Question

According to Keynesian economics, what does fine-tuning the economy mean?  
A) making government economic policy more "people oriented" 
B) using government policies to adjust the economy and promote economic stability 
C) tinkering with 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

Quizplus · Accepted Answer

Fine-tuning the economy according to Keynesian economics means using government policies (such as fiscal and monetary policies) to adjust the economy and promote economic stability. This includes managing aggregate demand, stabilizing prices, and reducing unemployment through government intervention.

According to Keynesian Economics, What Does Fine-Tuning the Economy Mean