macroeconomic stabilization

Macroeconomic stabilization refers to government policies aimed at reducing the fluctuations in a country's economy, such as controlling inflation, unemployment, and overall growth. By adjusting tools like interest rates, government spending, and taxes, policymakers work to keep the economy steady—avoiding excessive booms or downturns. The goal is to create a stable environment where prices are predictable, jobs are available, and economic growth is steady, which benefits individuals, businesses, and the overall society.