Active economic policy seeks to do all of the following except:
A) offset fluctuations in real GDP.
B) use monetary and fiscal policy to shift aggregate demand.
C) respond to changing economic conditions.
D) take a hands-off approach to macroeconomic policy.

Question

Quizplus · Accepted Answer

Active economic policy involves government intervention to stabilize the economy and prevent recessions. This includes using monetary and fiscal policy to shift aggregate demand as well as responding to changing economic conditions. A hands-off approach to macroeconomic policy would not be considered an active economic policy.

Active Economic Policy Seeks to Do All of the Following