Fine-tuning is most consistent with
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 is a concept that is rooted in Keynesian economics. It refers to the government's ability to use fiscal and monetary policies to fine-tune the economy and stabilize it during periods of instability or recession. The government manipulates the level of aggregate demand by adjusting its spending and taxation policies, and the central bank manipulates the money supply and interest rates to achieve macroeconomic goals. Therefore, fine-tuning is consistent with Keynesian or Modern Keynesian economics.

Fine-Tuning Is Most Consistent with