What are the macroeconomic policies?

Macroeconomic policies are the policies which the government may use to attain the various macroeconomic goals. The two main macroeconomic policies are:

• Fiscal policy. The government, through the treasury, can control the direction of the economy using the fiscal policy. The fiscal policy uses government spending and taxes to control the economy (to increase or decrease aggregate demand).
• Monetary policy. The government uses monetary policy tools through the central bank. Monetary policy tools involve the use of tools such as money supply, interest rate, open market operations, and reserve requirements.