Active Economic Policy Seeks to Do All of the Following

question 30

Multiple Choice

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.

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Definitions:

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Foreign Investment

Capital investment made by individuals or entities of one country in the assets or enterprises of another country.

State Industries

Industries owned, operated, and managed by the government of a country.

Microfinance

Financial services provided to low-income individuals or groups who typically lack access to traditional banking services.