Both fiscal and monetary policies focus on____________________?
Correct answer: B. the demand side of the market
- A. the supply side of the market
- B. the demand side of the market
- C. both sides of the market
- D. the global market
Explanation
Fiscal policy changes government spending and taxation, while monetary policy changes interest rates and the money supply. In the standard short-run model, both primarily influence aggregate demand.
Last updated
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,462 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Economics questions like this
Economics is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
Related questions
One percentage decrease in unemployment is associated with two percentage points of additional growth in real gdp is called?
Which of the following is a normative statement in economics ?
Macroeconomics deals with?
The study of inflation is part of ?
The total demand for goods and services in an economy is known as_____________?