Government economic policy
Government revenue
The government raise their money through different forms of taxation. This includes:
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Government expenditure
The government then spend this money on funding the public sector services such as:
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Advantages
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Disadvantages
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Controlling inflation
Interest rates can help to slow down inflation caused by excessive spending. If interest rates increase, the rate of inflation should decrease because:
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Controlling growth
Interest rates also help to control/stimulate growth. If interest rates increase, growth is negatively affected because:
SUMMARY Reducing interest rates:
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Supply-side policies
Supply-side policy = government policies to encourage the economy to increase its potential growth rate
Education and training
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Competition
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Labour market policies
Schools and pupils prepare as leaving age increases to 17http://www.bbc.co.uk/news/education-21874269
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