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 Federal Reserve 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 economy and smooth out the business cycle. It involves using tools such as interest rates, government spending, and taxation to target specific economic goals such as low inflation, high employment, and sustainable economic growth.

Macroeconomic Policy Activism