Global Macroeconomic Policy: Examining Policy Responses to Rising Oil Prices and Booming Stock Markets

Global macroeconomic
Policy

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Aggregate demand – Aggregate supply model............................................................................3
Because of the ongoing growth of new and growing economies, product prices, such as oil, are
rising. Examine the policy response to this particular issue........................................................4
In developed economies, the stock market is booming. Discuss the policy options for dealing
with this problem.........................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Macroeconomics is the discipline of economics that studies the economy's overall structure,
conduct, decision-making, and performance. Short-term economic growth and long-term
economic growth are the two main forms of macroeconomics study. The country is experiencing
unequal economic development, and emerging countries must address the concerns in order to
secure long-term economic growth in the market. Price distortions, a lack of domestic resources,
and government expenditures all contribute to the economy's overall instability (Su, Khan, Tao,
and Umar, 2020). There are other factors, such as rising debt levels, financial resiliency, and the
rate of climate change, all of which are impeding the economy's total development. All of these
elements contribute to the market's equilibrium in macroeconomics. These are the variables that
assure market expansion, such as rising oil prices and a stock market boom in the advanced
economy, which are also discussed in the paper. It also covers the benefits of various policies
and their responses to policymakers who use aggregate demand and supply to operate in
macroeconomics.
MAIN BODY
Aggregate demand – Aggregate supply model
The AD-AS (aggregate demand-aggregate supply) model depicts how national income is
determined and how price levels vary. This may be used to demonstrate business cycle stages
and how different events can cause changes in two major macroeconomic indicators: real GDP
and inflation.