• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Government Economic Policies and Business

Extracts from this document...

Introduction

Government Economic Policies and Business Question 1 (a) The government used fiscal policy to increase public spending. This implies that a rise in taxation also took place. The rise in taxes meant that people had less money to spend, i.e. less disposable income. As a result, they were unable to buy as much. This caused the demand of certain products to decline. As a result, the respective companies made less profit. This meant that they were unable to produce as much (also to avoid excess supply). ...read more.

Middle

In Japan, the fiscal policy was used to fund the games industry, to create more jobs, in order to increase the income and therefore, increase spending by the people in those jobs. However, we can see from the graphs that retail sales in Japan in 1997 were dramatically falling. A cause for this was the GDP which also hit an all time low in Japan. This meant that people did not have the money to spend, therefore, from the evidence available we can say that Japan's fiscal policy was unsuccessful. ...read more.

Conclusion

This may come as a direct tax on the petrol, or more indirectly by increasing the road tax on bigger vehicles. Provided that such polluting fuels are used to the same extent, this would generate higher tax revenue for the government which can then be used to increase public spending, such as building hospitals, which would not only result in better healthcare, but it would also create jobs, which would mean that people would be earning, allowing them more disposable income, and thus influencing spending power, which may in fact be another objective of the government. (d) (e) (f) (g) ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Macroeconomics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Macroeconomics essays

  1. Comparing the effects of immigration on GDP in Malaysia, Japan and South Africa.

    effort to induce new corporate activities and professional services."(Takeyuki Tsuda, Local Citizenship in Recent Countries of Immigration: Japan in Comparative Perspective, Pg 43) 5.1.1 If There Are No Immigrants in Japan Japan is well known as a country that has a lot of foreign immigrants.

  2. Budget 2004-05 and Economic Analysis of Pakistan

    Dollar Bearer Certificates -5 -25 -25 Special US Dollar Bonds -12500 -6000 -5000 o Floating Debt 15600 27600 30100 Treasury Bills 0 2000 2600 Prize Bonds 15600 25600 27500 * Public Account 53651 -11374 457 Saving Schemes 44620 -18745 -5610 G.P.

  1. Governments set economic objectives - Discuss the relative importance of each of these objectives ...

    The second government economic objective is low inflation. Inflation is the general rise in prices and there are three theories of inflation: demand pull, cost push and the Monetarist explanation. Figure 6.0 - Demand pull inflation Demand pull inflation is the Keynesian view of inflation.

  2. To what extent does the government budget/statement reflect current government priorities?

    A decision to spend money on building a new space shuttle, on the other hand, benefits only a small, specialized pool of experts, which would not do much to increase aggregate employment levels. Graph to show inflation rates in the UK compared with the United States and Canada.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work