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Government Economic Policy - Coggle Diagram
Government Economic Policy
Government economic policy refers to all the ways which the government tries to haven an impact on the economy
Fiscal Policy
revenue
taxation
spending
education
social welfare
healthcare
infrastructure projects
Monetary Policy
helps control inflation
used to set interest rates
used to control the supply of money available in an economy at a particular time
Industrial Policy
primary
extractive industries that use natural resources to produce goods
e.g. farming, fishing, mining, forestry
secondary
manufacturing and construction industries, which use raw materials from the primary sector to make other goods
e.g. computer manufacturers, furniture makers, builders
tertiary
service industries not directly involved in making goods
e.g. banks, education services, hairdressers, medical services
the government encourages both indigenous businesses and foreign direct investment as they create employment in the economy