A 'definition' question: Is Microeconomic policy a subcategory of Fiscal policy? (1 Viewer)

[Flise]

Hey all,

I hate that I am a perfectionist and extremely obsessed with my definitions.
I have a 2000 word essay due (fun) in 2 and half weeks on the 'consequences of high unemployment and inflation as well as policies to achieve low inflation and unemployment' and my plan is:

Unemployment
Consequences:
1. Opportunity cost to economic growth -> could be contributing to labour force -> production -> operating within PPF
2. Loss of tax revenue + social welfare payments (Another opportunity cost as the revenue used for social welfare payments could have been used to improve medium-term growth (build roads, hospitals, schools) + job creation
3. 'Skill atrophy' -> additional retraining costs to the gov
4. Who cares about the social consequences (joke)

Policies:
1. Fiscal policy (I'd like to refer ONLY to direct fiscal stimulus payments; Jobkeeper; so that I am able to analyse it as an effective tool to be used countercyclically in the short-term (My analysis: ineffective below NAIRU -> need for policy mix i.e my next body on microeconomic reform.)

2. Microeconomic reforms (Is this not fiscal as well??) I'd talk about jobtraining programs, childcare subsidies and all the sorts
3. I was thinking about doing an entire body on the ineffectiveness of monetary policy as a 'blunt instrument'

Inflation
Policies:
1. Monetary policy
2. Microeconomic reforms

I have realised that my main question is how can I delineate between fiscal stimulus and microeconomic reform in a nice way?

 

[mmmmmmmmaaaaaaa]

Macroeconomic policies are meant to target aggregate demand, Microeconomic policies are meant to target aggregate supply

You could differentiate between what you discuss like that, ie. how one affects aggregate demand and how another affects aggregate supply

But from what you've got so far it looks ok

ps. I also am obsessed with my definitions etc ... always is hard to keep under word count