Macroeconomic policy refers to the use of government policies and tools to manage the overall performance of the economy.

The main objectives of macroeconomic policy are typically to achieve price stability, low unemployment, and economic growth.

• Price stability: Governments can use monetary policy, which involves managing the supply of money and interest rates, to influence inflation and achieve price stability. They can also use fiscal policy, which involves changes in government spending and taxation, to manage aggregate demand and avoid excessive inflation or deflation.
• Low unemployment: Governments can use macroeconomic policy to create conditions that support job creation, such as increasing government spending on public works projects or cutting taxes to stimulate consumer spending. They can also use monetary policy to influence interest rates and stimulate business investment.
• Economic growth: Governments can use macroeconomic policy to promote economic growth by creating an environment that supports investment and innovation. This can involve investing in education and infrastructure, creating incentives for businesses to invest and innovate, and promoting trade and international cooperation.