What does monetary policy typically manage?

Monetary policy focuses primarily on the management of the supply of money in the economy. It is implemented by a country's central bank and involves using various tools to regulate the amount of money circulating in the economy and influence interest rates. The central bank aims to achieve macroeconomic goals such as controlling inflation, stabilizing the currency, and achieving full employment. This is done through mechanisms such as open market operations, discount rates, and reserve requirements.

In contrast, the other options relate more closely to fiscal policy or direct business management. Taxation levels and public spending budgets are typically managed by the government through its treasury and are part of fiscal policy designed to influence the economy by adjusting spending and tax rates. Employee wages are determined by market forces or collective bargaining and are not directly controlled by monetary policy, although they can be indirectly influenced by changes in interest rates and inflation, which monetary policy does manage. Thus, the unique role of monetary policy centers around managing the money supply, making this the correct answer.