Macro-economic environment

Objectives of Macro-policies

Economic growth

Types:Actual/Potential

Factors affect the economy;The multiplier in the national economy/Aggregate supply and demand

Factors affect economic growth

External trade

Technological progress

Natural resources

Neutral

Labor saving

Capital saving

Measure:GDP/GNP/Targets and indicators(Leading/coincident/lagging)/National income/Business cycle

Appraisals of economic growth

A higher income per head/Higher levels of consumption and living/More welfare services

Faster usage of natural resources/Increasing pollution/Increasing structural unemployment/in the short run.a cut in consumption

Government policies

circular flow of economy

Fiscal policy:taxation/public spending/public bprrpwing

Fiscal policy:PSNCR/PSBR/PSDR

Types of tax

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Direct taxes:income taxes/capital gain taxes/inheritance taxes

Indirect taxes:specific tax/AD valorem tax

regressive taxes

progressive taxes

proportional taxes

Monetary policy

Interest rates

exchange rates

Monetary policy

credit control