Macroeconomic Objectives and Economic Policies

Study the goals governments pursue and the policy tools used to influence economic activity.

What you will learn

• Growth, employment, price stability and external balance.
• Fiscal, monetary and supply-side policies.
• Policy trade-offs and time lags.
• Short-run and long-run policy effects.

Study focus

Name the objective, identify the policy tool and then explain the likely transmission to the economy.