ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Macroeconomics concerns the overall performance of the government.
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Macroeconomics concerns the overall performance of the economy.
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Macroeconomics concerns the performance of households.
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Macroeconomics concerns the performance of small businesses.
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Detailed explanation-1: -Why would a federal government decision to increase spending be a matter of macroeconomic policy? Macroeconomics concerns the overall performance of the government. Macroeconomics concerns the overall performance of the economy.
Detailed explanation-2: -Why is the government decision to increase or decrease spending a matter of macroeconomic policy? The decision affects the whole country not just a specific business or person. The government controls the country so if they decide to increase/decrease spending it affects everyone.
Detailed explanation-3: -Governments turn to macroeconomics when budgeting spending, creating taxes, deciding on interest rates, and making policy decisions.
Detailed explanation-4: -The major tools of macroeconomic policy are fiscal policy (government spending and taxation) and monetary policy (central bank control of the money supply). These tools are used to achieve macroeconomic equilibrium.