Government intervention can serve to stabilize the macro economy by

Question

Quizplus · Accepted Answer

Government intervention can help stabilize the macro economy by reducing inflation and encouraging economic growth. By implementing monetary and fiscal policies, the government can control inflation by adjusting interest rates and limiting government spending. This in turn can create an environment for economic growth as consumers and businesses have confidence in the stability of the economy. By promoting economic growth, the government can also encourage job creation and an increase in the standard of living, leading to a more equitable distribution of income.

Government Intervention Can Serve to Stabilize the Macro Economy by