Definition
- Macroeconomic policy
- Macroeconomic policy is the use of monetary policy, through interest rates, and fiscal policy, through government spending and taxes, to influence the whole economy.
- Not to be confused with: Macroeconomic objective
- A macroeconomic objective is a goal set for the performance of the whole economy, such as steady growth, low unemployment or low inflation.
Test yourself
What is the difference between macroeconomic policy and macroeconomic objective?
An objective is where the government wants the economy to be; a policy is the tool used to get it there.