question archive When policy-makers discuss ways of "stabilizing the macro economy," what are they focused on? a
Subject:EconomicsPrice:2.88 Bought3
When policy-makers discuss ways of "stabilizing the macro economy," what are they focused on?
a. Policy-makers are focused on finding ways of establishing a balance between public sector control vs. private sector control over the nation's resources.
b. Policy-makers are focused on finding ways of establishing income equality among all workers across all industries.
c. Policy-makers are focused only on finding ways of eliminating unemployment.
d. Policy-makers are focused on finding ways of balancing both the unemployment rate and inflation rate at low, stable rates.

Option D_ is correct.
It is because to stabilize the economy from business fluctuations, the policymakers aims to find the balance between the unemployment rate and inflation and they make policy to achieve the desired and stable rates.
Explanation of incorrect option:
It is because to stabilize the economy, policymakers have a focus on the determinants such as aggregate consumption, aggregate demand and aggregate supply rather than assigning property rights to different sectors of the society.
It is because to stabilize the economy policymaker are focused towards the situation of inflation and unemployment.
It is because along with unemployment, policymakers also have a focus on stabilizing inflation rates.

