Macroeconomics Theory And Policy Hl Ahuja Pdf Better [updated] -

Macroeconomic policy refers to the use of government intervention to influence the overall performance of the economy. The two main tools of macroeconomic policy are fiscal policy and monetary policy. Fiscal policy involves the use of government expenditure and taxation to influence aggregate demand. Monetary policy, on the other hand, involves the use of interest rates and money supply to control inflation and stabilize the economy.