External environment - Government policy
Introduction
Governments have to manage the economy to try to achieve their aims and to do this they have to use all the policy tools at their disposal. They have three main types of policy; fiscal policy, monetary policy and supply-side policy. They will use these to try to achieve their objectives. In this section we look in more detail at each type of policy. There is a basic overview explanation of all the policy types, theories relating to the different policies and some worksheets to see how well you have understood the issues.
- Explanation - what exactly is meant by fiscal, monetary and supply-side policy and how do they work? Who is responsible for each type of policy?
- Theories - a more detailed look at theories relating to fiscal, monetary and supply-side policy. What are the different types of taxes? What impact do the different taxes have? What effect do changes in interest rates have on businesses? What is meant by a budget surplus or deficit and do they matter?
- Worksheets - some worksheets looking at fiscal and monetary policy to see how well you have understood them.
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