Answer to Question #315251 in Macroeconomics for Niran

Question

1) suggest an economic policy could be used and explain how the implementation will be change a price level

Answer 1

Monetary policy

This policy is generally all about the quantity of money supply within an economy. The government through the central bank regulates the amount of money that is supplied to the economy. The government can increase the money supply in the economy thus affecting the price level of goods and services to increase too and it can decrease the money supply in the economy thus affecting the prices of goods to go down.