The U.S. economy remains subject to frequent boom and bust cycles. Thr

The U.S. economy remains subject to frequent boom and bust cycles. Throughout U.S. history, policymakers after the Great Depression often

(a) raise or lower taxes and spending to adjust aggregate demand and thereby smooth the
business cycle.
(b) take a hands-off approach to the business cycle.
(c) consult with world organizations on how to address cyclic fluctuations.
(d) close economies to international trade.

ANSWER

(a)