Which of the following is NOT considered a price level policy in economics?

• A. Monetary policy
• B. Trade policy
• C. Fiscal policy
• D. Exchange rate policy

Answer: (B)

Verified step by step guidance

1. Step 1: Understand what price level policies are. Price level policies are economic policies aimed at influencing the overall price level in an economy, typically to control inflation or deflation.
2. Step 2: Identify the common types of price level policies. These usually include Monetary policy (control of money supply and interest rates), Fiscal policy (government spending and taxation), and Exchange rate policy (managing the currency value to influence prices).
3. Step 3: Analyze each option given: Monetary policy, Fiscal policy, Exchange rate policy, and Trade policy, to see if they directly influence the price level.
4. Step 4: Recognize that Trade policy primarily deals with tariffs, quotas, and trade agreements, which affect trade flows but do not directly target the overall price level in the economy.
5. Step 5: Conclude that Trade policy is NOT considered a price level policy because it does not primarily aim to control inflation or deflation, unlike the other options.