Which statement best describes why a government's actions are important in macroeconomics? Check all that apply.

a. Government controls industry through policy.

b. Government is both a consumer and a producer.

c. Government can prevent changes and challenges.

d. Government can use policy to influence the economy.

e. Government can accurately predict economic trends.

Question

Business

Ana Coleman

17 July, 19:28

Which statement best describes why a government's actions are important in macroeconomics? Check all that apply.

a. Government controls industry through policy.

b. Government is both a consumer and a producer.

c. Government can prevent changes and challenges.

d. Government can use policy to influence the economy.

e. Government can accurately predict economic trends.

+3

Answers (2)

Know the Answer?

Bennett Lin · Answer 1

c, d and e are correct

Arianna Shannon · Answer 2

Answer: Option D, option A and option B.

Explanation: The Government of a country takes several actions to keep the inflation or deflation in an economy controlled. There are two kinds of policies that a government can use for these objectives, that are, monetary policy and the other is fiscal policy.

Using these policies the government controls economy and indirectly the industry as well.

Government is the consumer for many services produced by the industry and also the producer of many services to the economy.