Question

Which definition is correct for the term policy

Answer 1

A course or principle of an action adopted or proposed by a government,business,etc

Answer 2

A policy is a predifined set of mechanisms (system) adopted as the manner of guiding the decision making process in order to reach a rational outcome. Goverments are in charge of those at the national level.

For example, economic policies are implemented in order to achieve certain predefined objectives such as price stability or economic growth.