Intro to Business › Section A · Economic systems and business › Topic A.5
Achieving macroeconomic goals
Governments cannot order the economy to grow, hire and keep prices steady, but they have two powerful levers. Monetary policy works through money and interest rates; fiscal policy works through taxes and spending. Both reach every business, from a corner shop's overdraft to a carmaker's new plant.
In this topic
- Goals that pull against each other
- Monetary policy and the Fed
- How a rate change ripples out
- Contractionary and expansionary policy
- Worked example: a rate rise reaches a delivery firm
- Fiscal policy: taxes and spending
- Deficits, surpluses and the national debt
- Worked example: from deficits to debt
- The size of the US debt and the debate
- Common mistakes to avoid
- Key takeaways
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