The modern macroeconomic tools used by the government are _____ policy and _____ policy.

Question

Quizplus · Accepted Answer

Fiscal policy refers to how the government adjusts its spending and taxation to influence the economy, while monetary policy refers to how the government manages the supply and cost of money to influence the economy. Both policies are key macroeconomic tools used by governments to stabilize and regulate the economy. Tax, antitrust, capital, and labor policies are also important tools used by governments, but they are not specifically macroeconomic policies. The correct answer is B, fiscal policy and monetary policy.

The Modern Macroeconomic Tools Used by the Government Are _____