Policy refers to a set of rules or guidelines adopted by an organization or government to achieve specific objectives or outcomes.
Imagine you are playing a video game and there are certain rules you need to follow in order to advance through different levels. These rules are like policies that guide your actions towards achieving your goals within the game.
Fiscal Policy: Government decisions regarding taxation, spending, and borrowing that affect aggregate demand and overall economic activity.
Monetary Policy: The actions taken by central banks, like the Federal Reserve, to control money supply and interest rates.
Regulatory Policy: Rules established by governments or regulatory bodies to oversee industries or sectors for public protection and fair competition.
Study guides for the entire semester
200k practice questions
Glossary of 50k key terms - memorize important vocab
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.