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:

Wood

A hard, fibrous material made of the stems and branches of trees or shrubs, often used for construction, furniture, and fuel.

Production Function

A mathematical relationship describing the maximum output possible from a given set of inputs in the production process.

Plastic

A synthetic material made from a wide range of organic polymers that can be molded into shape while soft, and then set into a rigid or slightly elastic form.

Wood

The hard, fibrous structural tissue found in the stems and roots of trees and other woody plants.