High School

Why would a federal government decision to increase spending be a matter of macroeconomic policy?

A. Macroeconomics concerns the overall performance of the government.
B. Macroeconomics concerns the overall performance of the economy.
C. Macroeconomics concerns the performance of households.
D. Macroeconomics concerns the performance of small businesses.

Answer :

Final answer:

A federal government decision to increase spending is a matter of macroeconomic policy because it affects the overall performance of the economy.

Explanation:

In economics, macroeconomics is concerned with the overall performance of the economy. A federal government decision to increase spending would be a matter of macroeconomic policy because it affects the economy as a whole. By increasing government spending, the government can stimulate economic growth, create jobs, and promote overall economic stability.

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