Governments try to smooth business cycles by using the following policies, except

Question

Quizplus · Accepted Answer

While tax policies, interest rate policies, and government-spending policies can affect business cycles, wage rate policies are not typically used by governments to smooth business cycles. Wage rates are typically determined by market forces of supply and demand, and governments may intervene in wage-setting primarily to address issues of fairness or equity.

Governments Try to Smooth Business Cycles by Using the Following