Macroeconomic Policies
Published by Jim on Tuesday, January 2, 2007 at 9:20 AMEconomics Class Assignment for Wednesday, 3 January 2007:
http://en.wikipedia.org/wiki/Macroeconomic
* List four U.S. Macroeconomic Policies
* Generically, what are Macroeconomic Policies?
* Bring to class a copy of one article related to one of the U.S. Macroeconomic Policies.
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Top-down policy by GOVERNMENT and CENTRAL BANKS, usually intended to maximise GROWTH while keeping down INFLATION and UNEMPLOYMENT. The main instruments of macroeconomic policy are changes in the rate of INTEREST and MONEY SUPPLY, known as MONETARY POLICY, and changes in TAXATION and PUBLIC SPENDING, known as FISCAL POLICY. The fact that unemployment and inflation often rise sharply, and that growth often slows or GDP falls, may be evidence of poorly executed macroeconomic policy. However, BUSINESS CYCLES may simply be an unavoidable fact of economic life that macroeconomic policy, however well conducted, can never be sure of conquering.
Macroeconomics
The big picture: analysing economy-wide phenomena such as GROWTH, INFLATION and UNEMPLOYMENT. Contrast with MICROECONOMICS, the study of the behaviour of individual markets, workers, households and FIRMS. Although economists generally separate themselves into distinct macro and micro camps, macroeconomic phenomena are the product of all the microeconomic activity in an economy. The precise relationship between macro and micro is not particularly well understood, which has often made it difficult for a GOVERNMENT to deliver well-run MACROECONOMIC POLICY.
Taken from "Economics A-Z" www.theeconomist.com
Corrected URL: www.economist.com