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Tools for Macroeconomic Policy

What are Macroeconomic Policy Tools?

Written by Jason Gordon

Updated at March 27th, 2023

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What are the Tools for Macroeconomic Policy?

National governments have two tools for influencing the macroeconomy. The first is monetary policy, which involves managing the money supply and interest rates. 

The second is fiscal policy, which involves changes in government spending/purchases and taxes.

Back to:ECONOMIC ANALYSIS & MONETARY POLICY

Related Topics

  • Macroeconomics
  • Macroeconomic Frameworks
  • Macroeconomic Policy Tools
  • Productivity Economics
  • One-Third Rule
  • Gross Domestic Product (GDP)
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  • Weightless Economy
  • Intermediate and Final Goods or Services
  • Nominal GDP
  • Converting Nominal to Real GDP
  • GDP Inflator
  • Nominal GDP Price Index
  • Measuring GDP
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  • Expenditure Method
  • The Problem of Double Counting GDP
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  • Convert GDP to a Common Currency
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macroeconomic policy policy tools

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