Any policy whereby a government seeks to direct or affect the
economy in which it operates. For example, a government may offer a
tax credit to homebuyers to stimulate homeownership. Likewise, it may cut taxes to encourage spending or it may increase its own spending to create
demand for goods and
services. All governments pursue activist policies inasmuch as they seek to encourage
growth; however, the term connotes a policy in which the government plays a more direct role. See also: American Recovery and Reinvestment Act of 2009.