<P> In macroeconomics, demand management is the art or science of controlling aggregate demand to avoid a recession . </P> <P> Demand management at the macroeconomic level involves the use of discretionary policy and is inspired by Keynesian economics, though today elements of it are part of the economic mainstream . The underlying idea is for the government to use tools like interest rates, taxation, and public expenditure to change key economic decisions like consumption, investment, the balance of trade, and public sector borrowing resulting in an' evening out' of the business cycle . Demand management was widely adopted in the 1950s to 1970s, and was for a time successful . However, it did not prevent the stagflation of the 1970s, which is considered to have been precipitated by the supply shock caused by the 1973 oil crisis . </P> <P> Theoretical criticisms of demand management are that it relies on a long - run Phillips Curve for which there is no evidence, and that it produces dynamic inconsistency and can therefore be non-credible . </P> <P> Today, most governments relatively limit interventions in demand management to tackling short - term crises, and rely on policies like independent central banks and fiscal policy rules to prevent long - run economic disruption . </P>

Demand management (dm) includes which of the following activities