Answer to Question #318669 in Microeconomics for Emu

Question

Briefly explain macroeconomic problem and macroeconomic polic instruments

Answer 1

Macroeconomic problems arise when the economy of a nation does not achieve adequately the goals of full employment, stability and economic growth of the nation. As a result their is a cascading effect which follows.

Macroeconomic policy instruments are macroeconomic quantities that can be directly controlled by an economic policy maker. We have the monetary policy instruments which is conducted by the central bank of a country and the fiscal policy conducted by the executive and legislative branches of the government.