Macroeconomic policies are the set of government rules and regulations to control or stimulate the aggregate indicators of an economy, such as national income, money supply, inflation, unemployment rate, growth rate, interest rate etc. Macroeconomic policies include monetary policies and fiscal policies.   (3.a) Briefly define and explain monetary policies.   (3.b) Briefly define and explain fiscal policies.

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Risk and Uncertainty

Uncertainty refers to a situation when there is one possible outcome of a decision but where the probability of occurrence of each particular outcome is not known or cannot be estimated.