Question

What is the major instrument through which any government sets its overall economic policy each year?

Answer 1

The federal budget

Step-by-step explanation:

The federal budget is the estimate that the government creates each year to determine its revenue and its spending. This budget is the instrument through which the government sets its overall economic policy. It contains an itemized list of expenditure. Some expenses are mandatory, while other are discretionary and and need to get approved through the passage of bills.

Answer 2

The macroeconomic policies help direct monetary and national budget allocation.  It helps focus on the needed budget for different national concerns such as social welfare, education, military, infrastructure and other more government priorities. With this policy, it is envisioned to reach the people and provide the needed aspects to improve the economic status of the whole nation.