According to Keynesian Economics, What Does Fine-Tuning the Economy Mean

question 14

Multiple Choice

According to Keynesian economics, what does fine-tuning the economy mean?  

• A) making government economic policy more "people oriented" 
• B) using government policies to adjust the economy and promote economic stability 
• C) tinkering with microeconomic problems, such as externalities and losing sight of the big picture 
• D) placing fewer regulations on the private sector, thereby eliminating the need for government intervention

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Definitions:

Short-Term Regulation

The management or control of processes or systems over a brief period.

Homeostatic Mechanisms

Biological processes that maintain a stable internal environment in the body despite changes in external conditions.

Stimulus Qualities

The characteristics or properties of a stimulus that contribute to its ability to elicit a response.

Cerebellum

A portion of the brain located at the rear of the skull, responsible for coordinating and regulating voluntary movement, balance, and posture.