Economic Essay Assignment Homework Help

Economic Essay Assignment Homework Help

The main aim of the economic policies adopted by a government is to attain a sustainable superior rate of economic growth so as to accumulate national income and wealth, as well as attain superior living standards for its people. In order to achieve its economic goals, a government’s economic policy (ies) should be a combination of macroeconomic reforms, macroeconomic policies, as well as a constructive/conducive international economic environment. Governments mainly use fiscal and monetary policies; monetary policy influences the supply, as well as the cost of borrowing within a country, which in effect influences the country’s currency stability, full employment, and non-inflationary growth Economic Essay Assignment Homework Help.

This policy is carried out by a country’s central bank; in the US, the Federal Reserve Board one that conducts this function (Mankiw, 2012). The central bank or Federal Reserve may decrease or increase the rate of interest, which eventually affects business investment. The fluctuations in the rate of borrowing also affect consumption by the private sector, for example the household. On the other hand, fiscal policy involves the utilization of government influences on revenue collection, as well as expenditure, to control economic effects and policy aims as employed through budgeting. The legislative and executive arms of the government make decisions on fiscal policies; consequently, in the US, fiscal policy decisions are made by the president together with the Congress Economic Essay Assignment Homework Help.

Fiscal policy decisions revolve around two main items: taxes or government revenue and expenditure. A reduction in taxes increases the disposable income available to household and businesses, increasing household consumption and investments or savings. This eventually facilitates increased rate of growth of the GDP; conversely, government expenditure on infrastructure, health, and education among others, directly influences the country’s GDP growth. Increase in the GDP as a result of increase in Consumption, Investment, and Government expenditure improves the standard of living since services or goods are readily available for consumption by the private and public sectors Economic Essay Assignment Homework Help.

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