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Macroeconomics - Coggle Diagram
Monetary policy
decisions on money supply, interest rate and exchange rate to influence aggregate demand in the economy.
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Economic growth is an increase in the output of an economy and in the long run, an increase in the economy’s productive potential.
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Fiscal Policy
The government changing the levels of taxation and government spending in order to influence aggregate demand (AD) and the level of economic activity
Taxation: government levy on income or expenditure
Budget-> government financial plans with expenditure and tax revenue in a given year
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Examples of tax->
Income tax, Sugar tax, Sales tax/VAT, Cooperation tax, tariffs
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-government attempts to increase aggregate supply by reducing firms cost and increase productivity and efficiency ~increasing the supply/output of goods and service
INVESTING IN:
-education and training
-labour direct tax
-deregulation
-imporving incentives
-privatisation
-subsidies
-technology
WHATS IT MEANT TO DO?
-decrease unemployment
-increase economic growth
-reduce inflation
DEREGULATION:
process of removing restrictions on competitions on business ~ decrease the role the government and increases competitions.
EDUCATION TRAINING:
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