taxation and government spending:
economic policy decisions effect both business and customers. ex. if the government was worried that inflation was too high due to too much consumer spending, it could raise income tax. alternatively, if the economy was struggling, the government could reduce it.
40% of the uk economy is due to the government spending on items like the nhs, education etc. cuts in government spending would mean that there is less money injected into the economy
government spending creates a multiplier effect, creating jobs, extra spending and so on...