Which of the following would be an example of fine-tuning?
A) Firms increase wages to attract high-quality workers.
B) Firms increase employment benefits to increase workers' productivity.
C) The federal government enacts legislation to increase spending to try to stimulate the economy.
D) The federal government passes legislation that would require that the government's budget always be balanced.

Question

Quizplus · Accepted Answer

Fine-tuning refers to the government's attempt to influence the economy through adjustments in fiscal policy, such as increasing spending to stimulate economic activity.

Which of the Following Would Be an Example of Fine-Tuning