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Economic policy refers to the actions that governments take in the economic field. It covers the systems for setting interest rates and government budget as well as the labor market, national ownership, and many other areas of government interventions into the economy.Economic objectives are what the government wants to achieve and include: Stable prices (low inflation) Steady and sustained economic growth. Low unemployment or full employment.Economic Instruments encompass a range of policy tools, from pollution taxes andmarketable permits to deposit-refund systems and performance bonds. The common element of all economic instruments is that they effect change or influence behaviour through their impact on market signals.Economic policy is the term used to describe government actions that are intended to influence the economy of a city, state, or nation. Some examples of these actions include setting tax rates, setting interest rates, and government expenditures.Once a policy has been decided upon, many different methods can be used to implement it. These are sometimes called policy tools and include: information, education, legislation, regulation, guidelines, standards, procedures, programs, grants, subsidies, expenditures, taxes, and/or public ownership.In the United States, fiscal policy is directed by both the executive and legislative branches. In the executive branch, the two most influential offices in this regard belong to the President and the Secretary of the Treasury, although contemporary presidents often rely on a council of economic advisers as well. Economic objectives of business refer to the objective of earning profit and also other objectives that are necessary to be pursued to achieve the profit objective, which include, creation of customers, regular innovations and best possible use of available resources.