business and the political environment

Question 1

What do government interbentions aim to achieve?

Answer 1

aims to achieve the governments objectives by controlling and supporting businesses or passing legislations

Question 2

Debates about laissez-faire?

Answer 2

no level playing field
businesses work better with less control
can help companies through rough periods
can increase new job opportunities and reduce costs

Question 3

What does the fiscal policy entail? governem

Whats expansionary and contradictory?

Answer 3

changes in government tax level spending controlling the economy
expansionary - increase in government spending more than the increase in tax rates
contradictory - increase in tax rates more than the increase in goverment spending

Question 4

Whats a monetary policy?

Answer 4

interest rates set by the bank of england

interest rates rise when CPI inflation is expected to rise