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What is the goal of macroeconomics in managing the economy through policy to achieve jobs and low prices?

A. Inflation targeting
B. Full employment
C. Fiscal policy
D. Monetary policy

Answer :

Final answer:

Macroeconomic policy aims to promote economic growth, low unemployment, and low inflation using two main tools: monetary policy and fiscal policy. Therefore, correct options are C and D.

Explanation:

The primary goals of macroeconomic policy involve ensuring the overall health of the economy, which includes fostering economic growth, maintaining low unemployment, and achieving low inflation.

These objectives are essential for a healthy economy. There are two main tools used by the government to influence the economy and pursue these goals: monetary policy and fiscal policy.

Monetary policy, conducted by a nation's central bank (such as the Federal Reserve in the United States), includes policies that affect bank lending, interest rates, and financial capital markets.

Fiscal policy, determined by a nation's legislative body and the executive branch, involves government spending and taxes. These tools are essential in pursuing the macroeconomic goals and managing the economy.

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