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What two broad 'tools' are used in demand management?

A. Monetary Policy and Fiscal Policy
B. Exchange Rate Policy and Supply-Side Policy
C. Inflation Targeting and Trade Policy
D. Regulation and Deregulation

User Wondra
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1 Answer

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Final answer:

The two broad tools used in demand management are Monetary Policy, which manages the money supply and interest rates, and Fiscal Policy, which involves government spending changes and taxation.

Step-by-step explanation:

The two broad 'tools' used in demand management are Monetary Policy and Fiscal Policy. Monetary policy involves managing the money supply and interest rates and can be expansionary or contractionary to influence economic activities.

Fiscal policy involves changes in government spending and taxes to adjust aggregate demand and can also be expansionary, increasing aggregate demand through more spending or tax reductions, or contractionary, aiming to slow down the economy.

User Aniruddh Parihar
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