Governments macro economic policy objectives

Governments macro economic policy objectives summarised

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Preview of Governments macro economic policy objectives

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Fiscal policy:
Monetary policy
It is the manipulation of monetary variables to attain a set of objectives oriented towards the growth and stability of the
economy. This is controlled by the bank of England as it is pursued by the manipulation of interest rates. The current
inflation target for CPI is 2%.
By changing interest rates you affect the demand and supply of a currency!
Supply side policy
It is Attempts to influence aggregate supply
in an economy.
(How to improve the productive capacity of the economy.)

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