### Question 8 on Active Economic Policies **Question:**Active approach/policy includes all of the following, except _______.- Economic fluctuations- Government intervention- Self-correcting forces- Discretionary policies**Explanation:**In the image, there is a multiple-choice question related to economic policies. This question is important for understanding the mechanisms countries use to manage their economies during different phases of economic cycles. Let's analyze each option:1. **Economic fluctuations:** These are oscillations in the economy that occur as a result of changes in demand and supply levels in the market. They are typically characterized by periods of economic expansion (growth) and contraction (recession).2. **Government intervention:** Refers to the actions taken by the government to influence economic activity. This includes monetary policy actions by central banks, fiscal policies such as tax cuts or increased government spending, and regulations.3. **Self-correcting forces:** These are natural economic mechanisms that work towards bringing the economy back to its long-term growth path without the need for government intervention. This would include the way prices adjust in response to economic imbalances.4. **Discretionary policies:** These policies are actions taken by the government to stabilize the economy. These could include changes in taxes or government spending, which are decided on a case-by-case basis rather than being pre-determined by law.**Graph/Diagram Explanation:**There are no graphs or diagrams present in this image. The image displays a screenshot from a computer that shows a section of an economic questionnaire.**Additional Information:**The weather is also displayed at the bottom left of the screen, showing "101°F, Sunny." This information is not directly relevant to the question but indicates the conditions during which the screenshot might have been taken.### How to Study for Similar Questions:- **Understand Key Economic Concepts:** Ensure you have a solid grasp of terms like economic fluctuations, government intervention, and discretionary policies.- **Analyze Past Economic Policies:** Look at historical examples of when and how governments have intervened in the economy.- **Practice Critical Thinking:** Learn to differentiate between concepts that are interrelated and those that are distinct or oppositional.- **Review Study Material Consistently:** Regularly go over your notes and textbooks to reinforce your understanding of economic policies and their applications.

Active approach; This approach veiw economy as relatively unstable, and there is a need for…

Answered: estion 8 Active approach/policy…

Business

Economics

estion 8 Active approach/policy includes all of the following, excep Econom

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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