• 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. What are the government objectives? Explain why each is important and how the government ...

    All governments use open or concealed import controls to some extent. In the long run import controls may result in greater economic growth and increased spending power for domestic consumers. That increase in spending power could more than compensate for the loss in welfare due to high prices and less choice.

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

    Japan also calls for expansion of immigration control personnel. This changes the number of immigrants in the Japan. 6.1.3 Government Immigration Policies Many of the Japan rural regions have the problems of shortages of workers and taxpayers. It is difficult to see how an ever-shrinking workforce will generate the productivity and growth needed to resolve these problems.

  1. Budget 2004-05 and Economic Analysis of Pakistan

    PSDP as well as improve their cash balance because of federal transfers on account of divisible pool & straight transfers, grants and external assistance. Self-financing of PSDP by provinces during 2004-2005 has been estimated at Rs 33110 million. TRANSFERS TO PROVINCES (NET)

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

    Monetary policy also involves changes in the value of the exchange rate since fluctuations in the currency also impact on macroeconomic activity (incomes, output and prices). Basically, it is the process by which the government/ bank controls the supply of money, or trading in foreign exchange markets.

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

    This would clearly require a increase in the budget allocated for education, which the government has provided. - In the 2007 budget report the government announced investment in education and skills in the UK to rise to �90billion by 2010-11.

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

    potential businesses which may now refuse to set up in a run down area, thus reducing the opportunity of increasing employment within the area. Finally, unemployment bears a cost to the economy as a whole. There is a loss of potential output - if they were in work, more goods and services would be available for consumption.

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