Economic policy encompasses the actions taken by governments to influence the economy. It includes the measures taken to influence the level of economic activity, the distribution of income and wealth, and the allocation of resources. Governments use a variety of tools to shape economic policy, including fiscal policy, monetary policy, trade policy, and regulation.

Fiscal policy is the use of government spending and taxation to influence the level of economic activity. Governments use fiscal policy to stimulate economic growth, reduce unemployment, and control