Policy tools include
A)Population growth,spending behavior,and invention.
B)Wars,natural disasters,and trade disruptions.
C)Tax policy,government spending,and the availability of money.
D)External shocks and internal market forces.

Question

Quizplus · Accepted Answer

Policy tools refer to the specific actions that governments can take to influence economic outcomes. Tax policy, government spending, and the availability of money are all examples of policy tools commonly used to manage economic conditions. Population growth, spending behavior, invention, wars, natural disasters, and trade disruptions are not policy tools, but rather external factors that can affect economic conditions. Similarly, internal market forces and external shocks are not policy tools but rather factors that can be influenced by policy tools.

Policy Tools Include