Macroeconomics: Government Policy Objectives and Fiscal/Monetary Policy

Macroeconomics

Table of Contents
INTRODUCTION ..........................................................................................................................3
Select two key Government Policy objectives and explain how either Fiscal Policy or
Monetary Policy can be used to achieve these & what other factors influence the chances of
success.........................................................................................................................................4
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Macroeconomics is the study of external behaviour which includes the national and the
regional economy as a whole. This is basically related to the understanding the global events
which are occurring outside the business organisation that includes the level of unemployment,
general behaviour of prices and the total products produced in the economy. There are basically
three types of government macroeconomics polices that are fiscal policy,, monetary policy and
supply-side polices in the market which ensures the easy functioning within the economy. It
analyses all the aggregate indicators which is being influenced by the macroeconomic factors
within the economy. Corporation and the government bodies uses models in order to help the
economic polices and strategies. Economics theories can offer the insight that how the economic
functions and the long term impact of the specific polices and the decisions. It also helps the
individual in their business to take better decisions with the better understanding through the
effects of broad economic trends and polices of its venture. There are many objectives of the
government which needs to be full fill. In context to macroeconomics, the key government
policy objectives are reducing the unemployment within the economy and controlling the
economy in the market so that they tens to have more profits within the economy.
Employment and the balance in inflation within the economy are the important aspects
which needs to consider so that they can ensure the easy flow within the nation which also
having the higher level of profitability within the economy. This also leads to have the proper
flow of goods money within the economy so that the ample of job opportunities so that they can
rightly address the various aspects of economy. In context to monetary polices are the tool which
is being used by the central bank of England, so that they can rightly ensures the better flow of
goods and services within the economy and the unemployment can be reduced when the central
bank increases the flow of money within the economy so that the investor can get sufficient
funds to allocate in their new-starts by which ample of employment opportunities can be
introduce in the market which also ensure in the proper working of the economy. Huge
employment opportunities can also helps the individual to enhance the living standards and also
contribute to the betterment of the economy in the form of GDP.
On other hand, in order t manage the inflation within the economy, the central bank of
England cut the flow of money within the economy and increases the interest rate of borrowing
so that small banks also increase the rate of interest in the market so that the investors also cut

the borrowing from the bank and in such way the inflation can be reduce and the aggregate
demand of the economy come within the equilibrium within the economy which also contribute
to the GDP of the UK.
This respective essay will cover the key government polices objectives and also explaind
weather the fiscal or the monetary policy can be used in order to attains such objectives and also
describe the chanced of success. Further the recommendation is being made for the success of
the economy.
Select two key Government Policy objectives and explain how either Fiscal Policy or Monetary
Policy can be used to achieve these & what other factors influence the chances of success.
Macroeconomics polices defines the distinct polices that are connected to the operations
and also take place within the economy. These are the implemented within the economy as the
government of that country. As they focuses on attaining the various objectives when they are
planning to implement the various objectives in the nation as a whole. These macroeconomics
polices as pre-defined and being follow in an chain by the government in order to take the
appropriate and effective decisions within the market(Fu and et. al., 2022). The aim of the
macroeconomics is to maintain the stability and the growth of the economic environment within
the country. These polices also assist in the creating jobs, improving living standards with in the
nation. It also focuses on minimising the gap between rich and poor in the economy. The main
concept of macroeconomic polices are fiscal policy, exchange rate policy and Monetary policy.
These helps are the impactful tool which helps the government by which they can use to full fill
their aims and objectives of macroeconomics of the nation.
The objectives of macroeconomics is to maximise the unemployment and controlling
inflation within the economy. Unemployment is the state in which there are less job within the
economy and more people are jobless. So this is the main concern of the government is to
improvement the employment within the nation so that the individual can contribute to the better
living standards within the economy and also contribute to the GDP of the nation as a whole.
People are looking for new job or leaving school. Economist suggest that an unemployment rate
of 3% is close to full employment. This is some difficult to analyse the precisely. High
unemployment has certain social and economic costs to the economy. As the unemployment
have low income which enable low levels consumption. During employment, the government
will have to spend more on the benefits related to the unemployment, additional the government