Governments try to smooth business cycles by using these policies, except:

Question

Quizplus · Accepted Answer

Wage rate policies are not typically used to smooth business cycles as they involve direct intervention in the labor market, which can have unintended consequences. Instead, governments tend to focus on tax policies, interest rate policies, and government-spending policies to influence the overall health of the economy and mitigate the ups and downs of business cycles.

Governments Try to Smooth Business Cycles by Using These Policies