Economic policy refers to the actions and strategies implemented by a government to manage its economy. This includes decisions on taxation, government spending, and regulation of markets. The goal of economic policy is to promote economic growth, reduce unemployment, and maintain price stability. There are two main types of economic policy: monetary policy and fiscal policy. Monetary policy involves managing the money supply and interest rates, typically conducted by a country's central bank, such as the Federal Reserve in the United States. Fiscal policy, on the other hand, focuses on government spending and taxation decisions made by policymakers to influence economic activity.