The modern macroeconomic tools used by the government are _____ policy and _____ policy.

Question

Quizplus · Accepted Answer

Fiscal policy involves government spending and taxation, while monetary policy involves controlling the money supply and interest rates. Tax and antitrust policies are narrow tools that are not macroeconomic in nature. Exchange rate policy could be considered a tool of monetary policy, but it is not typically used by the government as a primary tool for macroeconomic management. Capital and labor are factors of production and not macroeconomic tools used by the government.

The Modern Macroeconomic Tools Used by the Government Are _____