Why Manage The Economy?

Question 1

What are the kinds of policies?

Answer 1

• Macroeconomic

* Microeconomics

Question 2

What are macroeconomic policies?

Answer 2

An attempt to influence the national spending, output, employment and overall material living standards. Government will manipulate aggregate and demand.

Question 3

What are microeconomic policies?

Answer 3

Involve government actions to assist industries or markets with improving their productivity to make them more competitive and to improve outcomes for consumers through lower prices, greater choice and increased employment opportunities.

Question 4

Budgetary Policy

Answer 4

The government provides a budget each year to show whether it will be spending more (expenditure) or earning more (taxation).

Question 5

What is the role of the government?

Answer 5

To implement policies in an effort to change the behaviour of individuals and businesses, and even overseas consumers, to achieve the goals of the economy.