Choose the best answer. The purpose of macroeconomic policy is to:
A) bring unemployment closer to the natural rate.
B) reduce the severity of recessions.
C) rein in excessively strong expansions.
D) bring unemployment closer to the natural rate, rein in excessively strong expansions, and reduce the severity of recessions.

Question

Quizplus · Accepted Answer

Macroeconomic policy aims to achieve multiple goals, including reducing unemployment and stabilizing the economy during both expansions and contractions. Therefore, the best answer is choice D as it includes all three goals of macroeconomic policy.

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