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Theme 2: Introduction to Macroeconomic Policy

infoWhy this? Macroeconomic policy shows how governments and central banks seek to influence growth, employment, inflation, and the balance of payments. Comparing fiscal, monetary, supply-side, and exchange rate policies helps us evaluate their effects on living standards and the trade-offs involved in pursuing competing economic objectives.

scheduleWhy now? Towards the end of Year 12, we bring together economic fluctuations, international trade, credit, and productivity to explain how policy can influence economic performance. This initial policy framework supports the more detailed analysis of policy effectiveness and its effects on firms and individuals in Year 13.


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