# Government policy

> This section explains how government uses fiscal policy (government spending G and taxes T) and monetary policy (interest rates and the money supply) to smooth business cycles. This is also called…

- Page: https://www.hlayiso.com/grade-12/economics/notes/business-cycles-and-forecasting/government-policy

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## Full notes

This is a preview of the Government policy notes for Grade 12 Economics. Create a free Hlayiso account to read the full notes, practise every question and track your progress.

## More in Business cycles and forecasting

- [Explanations](https://www.hlayiso.com/grade-12/economics/notes/business-cycles-and-forecasting/explanations) — Previous section
- [The new economic paradigm](https://www.hlayiso.com/grade-12/economics/notes/business-cycles-and-forecasting/the-new-economic-paradigm) — Next section
- [All Business cycles and forecasting sections](https://www.hlayiso.com/grade-12/economics/notes/business-cycles-and-forecasting)

## Frequently asked questions

### What will I learn in "Government policy"?

This section covers Government policy as part of Business cycles and forecasting in Grade 12 Economics. You'll find clear explanations, worked examples, and key definitions aligned to the CAPS curriculum.

### Is this section aligned with the CAPS curriculum?

Yes. All notes on Hlayiso, including "Government policy", are written against the official CAPS curriculum and ATP for Grade 12 Economics.

### What should I study after "Government policy"?

Continue with the next section in Business cycles and forecasting, or test your understanding with the interactive quiz linked to this section.

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