Macroeconomics - repetition

The government has four macro-economics aims:

1. reduce unemployment 

• cut taxes
• create more schools and hospitals
• reduce the exchange rate 
• reduce prices 
• reduce import

1. encourage growth (GDP)
2. increase export and reduce import
3. reduce inflation

There are two main policies:

1. fiscal - using taxes and government expenditure (using taxes)
2. monetary - using interest rates (government spending)