Macroeconomic policy activism:
A) is the use of monetary and fiscal policy to smooth out the business cycle.
B) is the primary theory of classical economics.
C) gives the Bank of Canada the sole responsibility for economic policy.
D) advocates that all of the people in a democracy should decide what type of economic policy is appropriate.

Question

Quizplus · Accepted Answer

Macroeconomic policy activism refers to the use of monetary and fiscal policy to stabilize the business cycle. This means that policymakers take action to counteract economic fluctuations and smooth out the ups and downs of the economy. This approach is often contrasted with laissez-faire policies that rely on free markets to correct themselves over time.

Macroeconomic Policy Activism