Economics · Macroeconomic Policies
Which of the following statements best describes demand-side economic policies?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Keeping national employment levels substantially below natural rates to ensure price stability
- 2Managing down long-term supply potential by continuously increasing government borrowing
- 3Ensuring that demand is kept entirely restricted so that inflation is reduced to zero
- 4A belief that the government should manipulate its spending and taxation to manage aggregate demand✓
Correct answer
A belief that the government should manipulate its spending and taxation to manage aggregate demand
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