Macroeconomic policies for stabilization include:
A)fiscal and monetary policies.
B)pollution policy.
C)lending policy.
D)business demand policy.
E)none of the above.

Question

Quizplus · Accepted Answer

Macroeconomic policies for stabilization are those designed to reduce fluctuations in output, employment, and prices. Fiscal policy involves changes in government spending and taxation, while monetary policy involves changes in interest rates and the money supply. Both of these policies can be used to stabilize the economy in response to fluctuations in aggregate demand. Pollution policy, lending policy, and business demand policy are not typically used as tools for stabilization.

Macroeconomic Policies for Stabilization Include