How would these be done? Macroeconomics focuses on: the economy as a whole. indi

Question

How would these be done? Macroeconomics focuses on: the economy as a whole. individual decisions. wages the allocation of scarce resources. The modern tools of macroeconomic policy are: tax policy and antitrust policy. fiscal policy and monetary policy monetary policy and exchange rate policy capital policy and labor policy. Fiscal policy attempts to affect the level of overall spending in the economy by making changes in: The interest rate. the money supply. banking regulations. taxes and spending.

Explanation / Answer

1.19 The economy as a whole.Because it deals with aggregate demand ,aggregate output,empolyment,GDP etc at macro level.

1.20 Fiscal policy and Moneytary policy. Also includes exchange rate policy now.However option B is correct.

1.21 interest rate.Fiscal expansion and contraction help raise/lower interest rate in the economy which directly or indirectly reduces investment demand,which finally affects aggregate spending.

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