Which of the following are used as policy tools?
A) Population growth,spending behavior,and invention.
B) Wars,natural disasters,and trade disruptions.
C) Taxes,government spending,and the availability of money.
D) External shocks and internal market forces.

Question

Quizplus · Accepted Answer

Taxes, government spending, and the availability of money are all commonly used policy tools in macroeconomic policy. These tools can be used to control the overall level of economic activity by influencing consumer spending, investment, and overall demand for goods and services. Other options listed, such as population growth, spending behavior, wars, natural disasters, and trade disruptions, are not typically considered policy tools within macroeconomic policy. External shocks and internal market forces may influence economic conditions, but they are not directly controlled by policymakers and are therefore not considered policy tools.

Which of the Following Are Used as Policy Tools