What best defines active policymaking?

Question

Quizplus · Accepted Answer

Active policymaking refers to taking actions to offset and stabilize changes in the economy. This can be done through fiscal or monetary policies, such as adjusting interest rates, government spending, or taxes, to address short-term economic fluctuations.

B, C, and D also represent forms of active policymaking, but they focus on longer-term goals or specific market structures. B aims to increase long-term economic growth through policies that promote investment and productivity, while C and D focus on making markets more or less competitive for efficiency or equity reasons, respectively. However, these policies may not necessarily be implemented solely to stabilize the economy in the short term.

What Best Defines Active Policymaking