Much of macroeconomics is concerned with advising governments on ways to ________ business cycles,since it is desirable to ________.
A)amplify,create the greatest cyclical peaks possible
B)amplify,create deep recessions to cool down the economy
C)dampen,avoid both very low troughs and very high peaks
D)dampen,keep the economy at its maximum productive capacity

Question

Quizplus · Accepted Answer

Macroeconomics aims to dampen business cycles, which refers to the fluctuations in economic activity. It is desirable to avoid both very low troughs (recessions) and very high peaks (inflationary booms) in order to maintain a stable and sustainable economy. Therefore, the objective of macroeconomic policy is to stabilize the economy and keep it at its maximum productive capacity over the long term. Amplifying business cycles can lead to economic instability and volatility, which can have negative consequences for households, businesses, and governments.

Much of Macroeconomics Is Concerned with Advising Governments on Ways