The correct option is d) demand management the supply side of the economy.
Governments typically employ various tools to manage economic activity. Demand management involves adjusting spending and taxation policies to influence the overall level of demand in the economy. By increasing government spending or cutting taxes, the government can boost demand during economic downturns, which in turn can help stimulate growth.
On the other hand, supply-side policies focus on improving the productive capacity of the economy by enhancing supply rather than demand. These types of policies can include tax incentives for businesses, deregulation, and investment in infrastructure.
Therefore, the government’s traditional role in utilizing demand management techniques to influence the supply side of the economy is a fundamental approach in macroeconomic policy.