Correct Answer: (4) None of the above
Solution:Macroeconomics is a branch of economics dealing with the performance, struc-ture, behavior, and decision-making of an economy as a whole. In macroeconomics, a variety of economy-wide phenomena is thoroughly examined such a GDP, unemployment rates, national income, price indices, savings, investment, international trade, and international finance. Budget comes under fiscal policy. It is usually implemented through two sets of tools: fiscal and monetary policy. In the monetary policy, the central banks control the money supply through several mech-anisms such as buying bonds to increase money supply, lowering interest rates, or having a contractionary monetary policy wherein banks sell bonds and take money out of circulation. In fiscal policy, the government uses revenues and expenditures including taxes and debts to influence the economy.
