> who has empowered the Government to actively manage economic cycles?

Voters

> based on which premises/presumptions does it accomplish its economics-related actions?

Find causal relationships -> create causes for effects that you would like to see

> the perils of moral hazard associated to the active involvement of Government

Maybe the 18th century governments overstepped their boundaries when, dunno, they stopped slave labor of 8-year olds in coal mines. Today, the term applies almost exclusively to private industry. Mostly financial.