Final answer:
The two tools the government can use to affect the macro economy are fiscal policy and monetary policy.
Step-by-step explanation:
The two tools the government can use to affect the macro economy are fiscal policy and monetary policy.
Fiscal policy refers to the use of government spending and taxation to influence the economy. For example, during a recession, the government can increase spending and reduce taxes to stimulate economic growth.
Monetary policy involves the control of the money supply and interest rates by the central bank. For instance, the central bank can lower interest rates to encourage borrowing and investment, which can stimulate economic activity.